Providing an outlook for the equity markets in Calendar Year 23 based on the impact of sectoral views and macro scenarios, CIO-Equities, Tata Mutual Fund, Rahul Singh said that at the current valuation premium, India’s relative performance in the short term and 2023 What happens in me becomes a function of it. Shallow vs deep recession in rest of world ie US/UK/EU and pace of recovery in China after reopening.
Slow recovery in China coupled with shallow recession in US/UK/EU may be best case scenario for India as it may maintain India’s valuation premium with limited impact on corporate profits. A deep recession could take a toll on Indian economic growth, even as it would ease inflationary pressures from input costs. Conversely, a global rebound led by China would reduce India’s valuation premium despite strong domestic fundamentals,” he said in a note.
Despite best efforts, portfolios make short-term moves shares Not always understandable as risks arising from global macros (extent and nature of recession, geopolitics) are inherently unpredictable. Hence portfolio construction has to be done to ensure that it survives an uncertain period before us, he advised, “In short, our advice to investors in 2023 would be: ii) Maintain core allocation Balanced Advantage Fundiv) Exposure to schemes benefiting from the broad-based economic growth and investment cycle.”
Discipline, coordination and getting the right breathing will be key and not just moving the arms and legs faster and there will always be times when running faster will yield better results like in 2021 or 2017, Singh said, adding that it looks less likely in 2023 We are entering a high interest rate regime.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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