India s allure has been gaining momentum as global investors seek substitutes for sickly Chinese markets and as expectations grow that national elections this year will see Prime Minister Narendra Modi return for a third term, assuring investors of both political and policy continuity.
"Nifty is now 20x 1-year forward - higher than the past 10-year average, but relative to EM (ex-China) the premium at 67% is only somewhat higher than the historical average. Also, on a PEG basis, the Indian market appears reasonable," said Jefferies.
Data shows Nifty 50 has seen just three positive years in the last 10 years – 2015, 2017 and 2018 – gaining in the range of 4-7 percent. In other years, it fell the most in 2014 when it slipped over 3 percent in January.
India Business News: Nifty50 rally outlook 2024: Historically, elections have held significant economic weight in the world's largest democracy and India’s capital markets
The October 2023 concentrated All-Season Portfolio consists of stocks viz. Nestle India, Cipla, Bajaj Auto, Tata Consultancy Services (TCS) and Infosys. Apart from ITC, NTPC also made an exit from its portfolio and replaced it with Cipla.