Nimesh Chandan, CIO, Bajaj Finserv Asset Management, believes the government will continue its path to incentivise manufacturing and infrastructure in the upcoming Budget.
The long-term outlook of the market is positive. However, experts suggest investors need to be prudent about their exposure to equities and place their bets in sync with their risk appetite.
India s recent economic performance has been robust, with both GDP and earnings growth making significant strides. This impressive growth has, to some extent, justified the elevated market valuations.
FIIs who had been bothered by the Indian markets rich valuations and were hoping for a correction to build more substantial positions in the market may see those hopes evaporating, leaving them with the unsavory choice of either staying out of a market that may not correct or may continue to do well or entering the market at current levels despite their reservations about the markets valuations in general, Kotak Equities said.