Amar Am­bani

Head of Re­search, IIFL Wealth Man­age­ment

Dalal Street Investment Journal - - COVER STORY -

We’ve had a fan­tas­tic run up last year with all sup­port­ive fac­tors – be it gov­ern­ment sta­bil­ity and its pro-growth stance, mar­ket liq­uid­ity and over­all sen­ti­ment. We firmly be­lieve in an up­trend­ing mar­ket. For the next year, we ex­pect a 15-18% rise in the Nifty from the cur­rent lev­els. The earn­ings yield of eq­ui­ties is dis­cernibly favourable and eq­ui­ties con­tinue to hold an in­her­ent edge over other in­vest­ment av­enues. The GST roll-out is ex­pected to boost long term GDP growth, lower lo­gis­tics costs, ar­rest tax leak­ages and pass on more cost sav­ings to con­sumers over time. The gov­ern­ment has shown a clear in­tent. In­dia’s de­mo­graphic div­i­dend is in place. Liq­uid­ity flow, in our opin­ion, would favour In­dia much more than seen in the past. We con­tinue to be­lieve that bot­tom-up stock se­lec­tion from the broader mar­ket would gen­er­ate a sig­nif­i­cant al­pha, de­spite the nar­row­ing of mul­ti­ples vis-à-vis large caps.❞

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