ETMarkets Smart Talk: India remains expensive vs EMs but could still attract higher global flows: Rupen Rajguru, Julius Baer India

economictimes.indiatimes.com:

“India, with its relatively superior economic and corporate earnings growth, could attract higher global flows than what we have seen historically," Rupen Rajguru, Head Equity Investments and Strategy, Julius Baer India.

In an interview with ETMarkets, Rajguru who has over has over 19 years of experience in the Indian Capital Markets said: “While India remains an expensive market vs the EM peers, we believe that stronger earnings growth, macro stability and better visibility will help the country to enjoy the premium valuations,” Edited excerpts:

We are approaching the last month of the year 2023. Where are markets headed?
The Indian markets seem to be on a good wicket at the current juncture, albeit some near-term intermittent volatility which again could be driven more by global factors.

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The economic environment is treading along well as reflected in the various economic/lead indicators. The corporate earnings are also displaying a healthy momentum, as reflected in the Q2FY24 results.

Valuations, after very muted market returns and strong earnings growth over the past two years, have also turned reasonable, moving closer to the historical averages with Nifty trading at around 18.5x one-year forward earnings estimates.

Overall market sentiment seems positive with broad market participation and healthy domestic flows, with the monthly SIP flows clocking USD2bn.

Global outlook remains bleak; India's premium to the world will remain elevated: