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In a press conference, ITI Mutual Fund shared its market outlook for the medium term. The fund house believes that Indian markets will see a multi-year bull cycle owing to the positive macro and micro factors.
The fund house is positive on the India growth story with 7% GDP growth, moderating inflation, range-bound crude prices, easing 10-year G-sec yield, stable currency and resilient corporate earnings leading the path.
It is bullish on sectors like general insurance, life insurance, telecom, domestic and global pharma, power and power finance companies and defence. It is bearish on consumer staples, but believes that food delivery and quick commerce companies may do well, although profitability needs to be factored in these themes.
In terms of triggers, the fund recommends to keep a close watch on earnings growth trajectory, capex, policy initiatives like PLI, Lok Sabha election outcome and the timing and quantum of interest rate easing globally.
Rajesh Bhatia, CIO, ITI MF, said, “We are at an early stage of economic cycle unlike in 2003-07 wherein markets were in late stage of valuation cycle and economic cycle and they corrected sharply. We continue to believe that the investment environment going forward will be a stock picker’s market. There could be instances where companies operating in the same sector may end up reporting a diverse set of financial results."
