"Benchmark yield is seen in the 7.32%-7.42% band, and mutual funds have added, but still some amount of tactical positioning is possible. This is also a good time to add positions gradually," said Dhawal Dalal, chief investment officer - fixed income at Edelweiss Asset Management.
"I assess equity markets with the C-F-E framework, where C stands for corporate earnings, F for flows, and E for event risks. Corporate earnings have grown well over the last two years, with Nifty 50 earnings per share rising 30% from 650 to 850. So today with Nifty 50 at around 20000 levels, we are trading at 23.5 times trailing earnings."
Gold returns from local currencies in Turkey, Malaysia, Taiwan, and South Korea have yielded the highest returns over local equities. Kapoor said equity returns in India have exceeded that of gold because the rupee has been ‘fairly stable, and the business environment has allowed companies to be profitable.