The year gone by – Samvat 2073 – was rewarding for equity investors.
Shrugging off concerns over weak earnings growth, the market put up a smart show. From last Diwali, the Sensex has gained 16 per cent, while the Nifty 50 is up 18 per cent — buoyed by the gush of domestic fund flows. But with overall earnings growth not catching up, the market is arguably in expensive territory.
The Nifty 50 and the Sensex now trade at about 23.6-23.8 times trailing 12-month earnings, higher than their five-year average of about 19 times.
How do fund managers expect the upcoming Samvat 2074 to pan out?
While most fund managers agree that the market seems pricey now, the views are mixed on earnings revival prospects and the market trajectory.
Cautious note
Gautam Sinha Roy, Senior Vice President-Fund Manager, Motilal Oswal AMC, strikes a cautious note by saying, “The market is expensive currently, with earnings recovery yet to set in.
