Nifty earnings to be resilient this quarter; election outcomes major trigger for markets: Sonam Udasi of Tata MF

livemint.com:

Sonam Udasi, Senior Fund Manager, Tata Mutual Fund believes large caps may offer better value in the near term. However, it is the potential rather than the size that determines the company’s relative attractiveness. In an interview with Mint, he says as India moves from a $2,300 per capita income economy towards $4,000 over the next five years, many new segments, and companies will mushroom and grow robustly.

Indian economy is in good shape currently with steady growth, manageable inflation and a steady RBI policy outlook. Banking system asset quality is pristine and corporate India too is not leveraged. These factors have contributed a lot to the Indian market's recent strength.

While near-term volatility is given, over the medium term, Indian markets should continue to hold steady reflecting the country’s economic credentials. Our focus on enhancing domestic manufacturing capability in sectors like defence, electronics, and railways and increasing our strengths in renewable and clean energy space bodes well for a well-rounded earnings momentum over the next few years. More successes in these spaces, and of course, election outcomes might influence market sentiment on either side in the coming few months.

Also Read: Why investors cannot escape China exposure Considering the global scenario and the US Fed’s positioning, it is likely that India too, may keep its interest rates steady for longer. The current interest rate environment in India is benign and is neither too high nor too low. Corporate India can live with that.