'Domestic flows will sustain, meaningfully' but not rise
Business Standard|July 05, 2024
The Sensex hit a record intraday high of 80,000 on July 3. GAUTAM SINHA ROY, chief of equity funds at ICICI Prudential Life Insurance, tells Puneet Wadhwa in an email interview that going forward, earnings delivery, which remains strong, would be the key driver for stock returns with some moderation in valuations possible. Edited excerpts:
'Domestic flows will sustain, meaningfully' but not rise

Would you call the market's recent spurt from June 4 low as irrational exuberance?

Short-term equity market movements are often driven by liquidity flows and sentiment changes. With the elections out of the way, the market has been reinvigorated, driven by domestic flows and the return of foreign institutional investors (FIIs). The market sentiment also seems to be acknowledging policy continuity for the next five years, which is supportive of investment-led gross domestic product (GDP) growth.

The market attention will gradually shift to earnings and valuations. Market earnings are expected to rise in the 'early teens' for the next two financial years, versus over 20 per cent per annum seen in the previous three years. Hence, we expect some tempering of market returns going forward.

The pockets of the market in which excess exuberance can be seen will undergo a reality check of earnings and valuations. Some laggard sectors of the last couple of years are likely to outperform.

هذه القصة مأخوذة من طبعة July 05, 2024 من Business Standard.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة July 05, 2024 من Business Standard.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من BUSINESS STANDARD مشاهدة الكل
Business Standard

Scrapping NEET-UG not rational, Centre tells SC

The Centre on Friday told the Supreme Court that scrapping the National Eligibility-cumEntrance Test-Undergraduate (NEET-UG)-2024 examination would not be a rational step in the absence of proof of largescale breach of confidentiality of the exam.

time-read
1 min  |
July 06, 2024
Business Standard

Lone Fox in the twilight

For readers and non-readers alike, Ruskin Bond has been a beacon of Indian literature for children, especially in the short-story genre.

time-read
3 mins  |
July 06, 2024
Business Standard

Veg thali price up 10% in June on costlier veggies

The average cost of a vegetarian thali in India rose by 10 per cent in June due to an increase in prices of onion, potato, and tomato, a report by Crisil said on Friday.

time-read
1 min  |
July 06, 2024
Stay calm, sleep well: PM to Paris-bound athletes
Business Standard

Stay calm, sleep well: PM to Paris-bound athletes

Neeraj Chopra shared his fitness concerns, P V Sindhu talked about the significance of selfbelief and Nikhat Zareen could barely hide her excitement about being a first-time Olympian during a light-hearted interaction with Prime Minister Narendra Modi, who advised the Paris-bound group to stay calm and sleep well for best results.

time-read
1 min  |
July 06, 2024
Content marketing before its time
Business Standard

Content marketing before its time

The 1976 film Manthan, based on the origin of the Gujarat Co-operative Milk Federation Marketing (GCMMF-Amul Dairy), was recently in the news.

time-read
3 mins  |
July 06, 2024
Cashless denied? Swipe card, go for secured loans
Business Standard

Cashless denied? Swipe card, go for secured loans

A recent survey by Policybazaar.com found that many people with health insurance policies face challenges when denied the cashless facility and forced to make upfront payments at hospitals.

time-read
2 mins  |
July 06, 2024
Muted Q1 performance for listed media majors
Business Standard

Muted Q1 performance for listed media majors

Polls, cricket, lack of big-budget movies hit broadcasters' showing

time-read
3 mins  |
July 06, 2024
Business Standard

Earnings upgrade, valuation uptick for consumer majors

Analysts are turning their attention to the fast-moving consumer goods (FMCG) sector for several reasons.

time-read
2 mins  |
July 06, 2024
HDFC Bank shares drop 5% on weak 01
Business Standard

HDFC Bank shares drop 5% on weak 01

HDFC Bank shares plunged 4.55 per cent on Friday to close at 1,648.10 on the BSE, after the bank reported a sequential decline in both advances and deposits for the quarter ending June 2024 (Q1FY25).

time-read
2 mins  |
July 06, 2024
Business Standard

Sensex, Nifty log fifth straight weekly advance

But sharp losses in HDFC Bank drag benchmark indices lower on Friday

time-read
1 min  |
July 06, 2024