No red flag in market but expect low teens returns: Siddharth Srivastava

economictimes.indiatimes.com:

Siddharth Srivastava, ETF Products & Fund Manager, Mirae Asset Investment Managers (India), says “from a macroeconomic indicators point of view, there are no red flags. Things look robust. But I think investor expectations this year or for next year or so should be muted. Somewhere around low teens is what investors should be okay with unless and until there is a next good set of news which will provide the next momentum to the market.”

Let us begin by discussing the market setup itself. We are very poised at an inflection point where there are no major triggers for the markets because elections are priced in, earnings are behind us, and there is no other major event ready to watch out for. What do you then think is the right expectation in terms of returns from the Indian markets this year?
Siddharth Srivastava: From a valuation point of view, investors should remain cautious, especially in the microcap, smallcap category. There are pockets of opportunities, especially in the largecap and the midcap side. But markets will consolidate. Earnings need to come out at a reasonably good level to justify the valuations where we are currently on. I think that will drive the next possible support in the markets.

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From a macroeconomic indicators point of view, there are no red