Who is going to win the market race? Valuation or past performance? Nilesh Shah explains
Nilesh Shah, MD, Kotak AMC, says “India today is trading at a premium valuation to others as the Spider Man movie said “with great power comes great responsibilities.” With higher valuation, comes higher expectations. Our headwind will be to deliver on those expectations. We are like Suryakumar Yadav or Virat Kohli, we are supposed to score a century every time we come to bat; a 10-run, 30-run cameo is not good enough.”
Just taking a cue from your last tweet, who is going to win the race? Valuation or past performance?
That is a very-very tough question.
But my feeling is that in today's environment, Indian valuations are justifying past performance and let us pray that we deliver future performance in such a manner that this valuation sustains.
So, the valuations will sustain, but you have also just come out with your market outlook for 2024. In a gist, tell us what we should expect because at the start of 2023 everybody was talking about maybe a paltry single-digit growth and low single-digit from the Indian markets, but we have beaten that. What is the expectation for 2024 now?
One, we have learned from our past errors that never try to predict the market.
Our market outlook does not try to predict the market. We try to give data points to the investors so that they can fill those data points to arrive at their own conclusions over a period of time.
For example, today we are saying that the US Fed is maintaining a very-very delicate balancing between growth and inflation.
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