Focus on reasonable valuations, avoid chasing momentum: Shibani Sircar Kurian

economictimes.indiatimes.com:

«Look at companies where growth is intact but are trading at reasonable valuations rather than chasing momentum and looking at companies where valuations are elevated,» says Shibani Sircar Kurian, Kotak Mahindra AMC.

What part of this nervousness will you attribute to the uncertainty regarding the portfolio allocations at the cabinet level or do you think whoever gets whatever in terms of the various ministries, it does not really change the prospects at company level, at the index level and hence one should completely ignore the noise which is coming in from the political scene right now.
Our belief is that now that the elections and the verdict is behind us, it is back to basics and back to fundamentals. So, for India as such and for the markets, if you look at the three factors that were driving markets so far are largely intact.

One is the macroeconomic parameters are strong. Second, corporate profitability and as seen in for FY24 numbers as a whole remains fairly strong and corporate profit to GDP has been on an uptrend.

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And the third is domestic flows continue to remain fairly strong. So, from that perspective, markets are holding up well in terms of fundamentals. The other question that we often encounter is on valuations.

Now it is true that India relative to the