Expert view: Tone down return expectations from Indian stock market, says Premchandani of UTI AMC
17 hours, 5 minutes ago

Expert view: Tone down return expectations from Indian stock market, says Premchandani of UTI AMC

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Expert view: Amit Premchandani, Senior Vice President and Fund Manager – Equity at UTI AMC, believes valuation remains in above-average zone for large caps while mid and small cap are expensive. This year's key trends have been a sharp improvement in the earning profile of capital market players, driven by broader participation leading to significant volume growth for exchanges, pick up in SIP flows for mutual funds and growth in demat account and trading volumes for brokers and registrars. In the long-term, equity market returns are linked to underlying earnings growth, but in the short-term, the market could either trade at an expensive or relatively cheap valuation depending upon the underlying macroeconomic environment and emotions of greed and fear of investors. At the same time, the market has ignored the highest ROA profile in history, mid-teen loan growth in an environment of low single-digit volume growth across sectors, decent asset quality, and adequate capital.

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