Fund Manager Talk | Growth stocks will continue to command premium: Vishal Jajoo
While it is not easy to find stocks at reasonable valuations in a bull market, Vishal Jajoo, Fund Manager – Equity, ITI Mutual Fund, says growth stocks in India would continue to command a premium for the visibility in earnings that they offer.
“The risk of not being in the markets is much higher than the risk of being in the markets. We continue to advocate disciplined investing in markets with a medium to long term view,” Jajoo says.
Edited excerpts from a chat:
How would you read the market’s resilience to bad news?
Well the kind of resilience which the market is exhibiting is indeed strong but not way off the mark. We need to acknowledge the fact that Corporate profit as a % of GDP for FY23-24 are the highest in the last 16 years. The last time we had witnessed this figure in FY07-08. However, post FY08 the markets were impacted by a series of negative events like Global Financial Crisis, policy paralysis in India, among others.
This time we are witnessing a scenario where globally interest rates have peaked and are directionally headed downwards. In India, crucial events like the General Elections and Union Budget are behind us. Equity markets always tend to look forward. The fiscal deficit guidance presented in the Union Budget for FY25-26 at 4.5% is quite commendable and makes a strong case for a ratings upgrade (last upgrade took place in 2007).
Overall corporate earnings have been in-line with expectations and coupled with a good monsoon this year, we are witnessing positive news flow not only from
