Domestic brokerage firm Kotak Institutional Equities suggests that there are no immediate negative factors that could prompt a significant correction in the market. However, it highlights overvaluation in the majority of sectors and stocks, with the market willing to overpay for weak business models
India s entry into JPMorgan s emerging-market debt benchmark is expected to attract up to $40 billion in inflows, according to Goldman Sachs. India s GDP grew by 7.6%, surpassing estimates. India continues to outperform China, Japan, and Germany, and is projected to surpass Japan in GDP by 2027. India s inclusion in the JPMorgan index is a strong indication of its global growth leadership.
“For all of this year, Nifty s performance has been driven by EPS upgrades which is mostly because of roll forward issues and the PE multiple has actually declined. The market performance is increasingly being driven by roll forward gains on EPS and so I think the Indian market will time correct.”
“If somebody can put their money in the bank and get 5%, it is difficult to put more money into India or for that matter, any other market. So there is a great sucking sound that is taking place around the world. The US dollar is so strong against currencies around the world but this is temporary. Interest rates will come down eventually and you will see money coming back in.”
Goldman Sachs expects India s real economic growth to be 6.5% in 2023 and 6.3% in 2024 - the highest among large economies in the region, but slightly below the Indian central bank s target of 6.5% for fiscal 2024.