Investors continue to invest despite equity markets hitting new highs and valuations looking stretched. Nimesh Shah, MD & CEO of ICICI Prudential Asset Management Company, does not see this as a risk. He expects inflows to continue and markets to remain buoyant. Excerpts:
What is your take on continued inflows despite equity markets hitting all-time highs?
The Indian equity market is no longer cheap with the Nifty trailing PE (price-earnings) at 23.31 times and have already discounted this year’s earnings recovery. However, it is still a good time for long-term investors to enter the market owing to two major reasons.
First, the Indian economy is likely to grow at the rate of 7 per cent plus, which is one of the highest in the world and second, corporate earnings are likely to be robust. Going forward, we expect the first signs of GST impact to be visible in FY19.
