Market returns may be 2-3% above nominal GDP growth in 2026: Anthony Heredia

Subscribe to enjoy similar stories. After two record years of fundraising, investor appetite for new listings could moderate, as abundant supply and external headwinds weigh on secondary markets. While declining to comment on possible budget measures, Anthony Heredia, managing director and chief executive officer of Mahindra Manulife Mutual Fund, said that policy measures aimed at boosting foreign capital flows, either directly through tax incentives or indirectly, could help create economic momentum.

After underperforming global peers for a year amid high valuations and low earnings growth, India's relative valuations are beginning to turn attractive in dollar terms, he said in an interview. Edited excerpts: It is still early days in terms of evaluating overall Q3 earnings, with most of the earnings being reported by the larger companies to date. We don’t expect much of a negative surprise from earnings that are still to come.

There has been a one-time effect of provisions to comply with new labour laws, which would cause the differential between revenue and profit growth numbers. For a while now, our portfolio stance has been large-cap biased, and that call has been principally valuation-driven. That said, we believe that there are opportunities across sectors, and currently favour financials, consumption, information technology (IT) and commodities.

Also, the manufacturing export-oriented businesses could warrant a review, basis the outcomes of free trade agreement/bilateral trade agreement details with the European Union and the US. Given that sector rotation is playing out over much shorter time cycles, our core approach continues to be bottom-up. Investing always needs to be in context of what you are seeking to