7 Sep 2022
Equity markets have ended with gains for two months now, with the Nifty 50 gaining 3.5% in August, helped by inflows from foreign institutional investors.*
The GDP growth for Apr-Jun has come in at 13.5%, which although, lower than expectations, is still one of the best growth rates in the world^.
India has also seen a steady progress in monsoon, and strength in credit growth in the recent times, said Harsha Upadhyaya, the chief investment officer for equities at Kotak Mahindra Mutual Fund.
While there have been small earnings downgrades in 2022-23 (Apr-Mar) after the June quarter earnings, things could improve in the second half of the year depending on the inflation trajectory, he said, while discussing the outlook for September.
It is, though, crucial that earnings must be on expected lines for gains to sustain at current levels, he said, especially for mid- and small-cap companies.
Investors must follow the time-tested principles of investing regularly, with a focus on the long term, Upadhyaya said.
“The recent sharp pullback in markets, largely unexpected after three quarters of bearish or lull period, also once again underlines how difficult it is to time the markets,” he said, while sharing his outlook for September.
He also said investors must use periods of volatility to build their portfolio for the long term at better valuations.
This article is for information purposes only. The information provided herein is derived from public sources, believed to be from reliable sources. However, no representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. Views expressed herein involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied herein. Kotak Mahindra Mutual Fund/ Kotak AMC is not indicating or guaranteeing returns on any investments. Past performance may or may not be sustained in future. Readers should seek professional advice before taking any investment related decisions and alone shall be responsible for any decision taken.