5 years, 4 months ago

Why markets are rising in times of slowdown

Investors in India’s equity markets are really forward looking. “The Indian stock market is already factoring in reasonable recovery in the economy and earnings,” analysts at Kotak Institutional Equities explained in a note to clients. Ltd echoed this view: “India’s equity markets appear sanguine that the worst has passed.” Simply put, the markets are up purely on the hope of a better future. However, the Indian equity market has largely been buoyant on account of better-than-expected corporate earnings in the September quarter and on expectations of further tax reforms by the government,” says S. Naren, executive director at ICICI Prudential Asset Management Co. Ltd. “There is a significant disconnect between valuations of growth and value stocks, making value as a theme very attractive for investments,” says ICICI Pru’sNaren.

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