India Strategy |
Not yet in bubble territory |
n Valuation comfort: Previous peak valuations were at 24.5x/20.4x 1FY/ 2FY EPS respectively; while current valuations are at 19.3x/16.1x 1FY/ 2FY EPS respectively
n Mid caps have potential to appreciate
n FII flow will dominate the market
n Sectoral weightage: Oil & gas, Power and Telecom are losers while biggest gainer is Financial Services
n New issuances can be absorbed by the market
n Corporate results: upside in earnings already captured
n Macro factors look quite favourable
n Sector preference: Agri-input, Auto, Banking, Engineering & capital goods and Pharma
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