ETMarkets Smart Talk: Indian market expensive but money from MF SIPs making all the difference: Rakesh Parekh
“Though macro parameters such as BEER ratio or M-Cap-to-GDP ratio looks expensive, Indian market is supported by domestic savings getting channelized through MF SIPs, along with corporate profitability which has been steadily improving,” says Rakesh Parekh, MD and Co-Head, Portfolio Management Services, JM Financial Ltd.
In an interview with ETMarkets, Parekh said: “We expect domestic facing sectors to outperform relatively in terms of earnings growth led to a large extent by the capital goods sector and Railways” Edited excerpts:
Indian market seems to be consolidating after hitting a high in September largely on account of global factors. What is your take?
Rising US yields, persisting China slowdown, and elevated crude oil prices amidst geopolitical uncertainties, especially the latest developments in the Middle East are key headwinds facing equity markets in the short term.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Chief Digital OfficerVisitIndian School of BusinessISB Chief Technology OfficerVisitIndia, however, continues along its stable growth trend in comparison to a global environment awash with rising challenges.
The monsoon progression was relatively patchy although the August month saw some pick-up in rainfall distribution.
For India, the major positives remain strong GST collections, steady GDP growth, stable CAD, high Forex reserves (~$590bn), and reasonably strong earnings growth visibility (15%+) as we go into 2HFY24 and beyond.
ETMarkets Smart Talk: We do notice “pockets of irrational exuberance” in mid and small-cap space: Trideep Bhattacharya
The festive season is also underway and we expect some pick-up
