General Elections 2024 next big trigger for markets; can't say interest rates have peaked, says Dikshit Mittal of LIC MF

livemint.com:

Dikshit Mittal, fund manager of LIC Mutual Fund believes while state elections can create short-term volatility, the outcome of the General Elections 2024 is a key monitorable. In an interview with Mint, Mittal said while interest rates globally seem to be near peak, there is no clear visibility on the timeline for interest rate cuts to begin at least for the next two quarters. Edited excerpts: In the backdrop of global macro headwinds like elevated inflation, higher interest rates, geopolitical tensions, and muted global growth rates, Indian equity markets have witnessed a decent run in the last one year.

However, it is difficult to predict markets going forward. Corporate profitability and balance sheets also remain in decent shape and the earning season so far has been decent with sectors like banks, automobiles, and capital goods posting good results. That said, investors entering markets at current levels need to keep a slightly longer-term view of the market as we are entering into a busy election period, which can create some short-term volatility in markets.

Also Read: India's economic resilience causing a strong influx of IPOs, says Mahavir Lunawat of Pantomath Capital Advisors The next trigger for equity markets is the outcome of General Elections 2024. State elections can create short-term volatility, but the outcome of the General Elections 2024 is a key monitorable. In addition, the trend in global interest rates is key monitorable from an equity market perspective.