ETMarkets Smart Talk: Indian market is currently not in bubble zone, but some are in euphoric zone: Rohit Agarwal

economictimes.indiatimes.com:

“Indian markets are not necessarily in the bubble zone as of now. Markets are certainly in the higher than long-term average zone, but not in the Bubble zone," Rohit Agarwal, Senior Executive Vice President and equity Fund Manager,Kotak Mahindra Life Insurance Company Limited.

In an interview with ETMarkets, Agarwal said: “In the last 3 years or so, market earnings have beaten the market expectations. Going forward, market expectations are mid-teens type of earnings,” Edited excerpts:

The month of December started on a robust note with benchmark indices hitting fresh record highs. Where is the market headed in 2024?
The macro has improved recently. With the State election results throwing some positive surprises, the equity markets have rallied.

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Going into 2024, barring shocks either on the global macro front namely US 10-year bond yields, inflation, geopolitics or India-specific issues on inflation or earnings, the markets are likely to remain robust.

What will drive the next leg of the rally – FOMO, TINA, policies from govt or earnings?
Market rallies are a mix of — Global and local Macro, Flows, earnings, and valuations. Nothing will change on that front.

FOMO — it gets adjusted over time with earnings. TINA- it’s never the case, Policies from the government — can shape the earnings of Corporate India which in turn impacts markets eventually.

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