Outside of the top eight companies dominating the indices, most equities have not experienced the same rally. It s time to diversify and start looking at MidCap stocks.
"India is the 5th largest in the world by equity market capitalisation, after the US, China, Japan and Hong Kong. The rally in domestic equities is backed by strong fundamentals, which is reflected in India s growth and inflation dynamics, healthy fiscal situation, unleveraged corporate balance sheets, macro stability, political stability, and policy push towards capex and Make in India. Taking cue from these factors, we believe India provides a secular growth story to global investors which is unique amongst emerging and developed economies."
"Apart from elections, stronger economic growth and improving earnings outlook should bode well for equities over the next one year. As long as India has the right structural and fundamental themes, I believe 2024 will be good for the investors. There is a possibility of increased FII flows in 2024, given expectations around political stability and peaking/falling interest rates, especially towards the second half of the year."
“We believe that the incumbent government might continue with regards to the general election in 2024 in all probability and that is a base case scenario. There could be a little bit of volatility but that said, the excitement in India and its economy is primarily because of its unique advantages of demographics, its cost of manufacturing in terms of competitiveness and it is also becoming an export story and is not just limited to local consumption.”