New Delhi: The current market turmoil provides a more sanitary entry point for long-term investors and says the medium- to long-term story of Indian stocks continues to depend on earnings escalation.
According to a report by SBI Funds Management Limited, in the past 4 years, in the past 4 years, in the past 4 years, in the past 4 years, in the past 4 years, in the past 4 years, in the past 4 years, in the past 4 years, in the past 4 years, the medium-term trend is still encouraging.
It mentioned: “In sectors, we have been keeping constructive in discretionary consumption because the continuous growth of this category stems from disproportionate growth in this category as India’s GDP is close to US$3,000 per capita.”
By lowering taxes, the thrust in the union budget is a headwind for the sector. On the other hand, “We also maintain a positive attitude toward the drama related to manufacturing and investment cycles from a long-term perspective and believe that recent corrections may bring interesting opportunities in some of these names,” the SBI report said.
As the current panic fades, the report believes that the market will become sharper and move to companies with strong business models, long-term revenue growth visibility and sustainable cash flow.
Now that the Reserve Bank of India has launched a policy interest rate reduction cycle, given the current limited space, the emerging problem to be solved will be the dynamics of liquidity.
“This will be an ongoing process that should have a significant impact on the shape of the curve and on the differences in the future,” the report said.
While slowing down speed is still a topic, portfolio duration is still preserved to maintain the scope of the upper band, it must be understood that market dynamics may limit the extent of incremental growth.
“At the same time, the current dynamics of market output provide opportunities to achieve relative value with lower risk through specific funds. This should also be consistent with investor preferences in terms of risk tolerance and tenor,” the report said.
Short-term bond funds continue to offer higher accruals, wider spreads, and best risk/rewards, offering opportunities in the coming months and before the coming years.
Typical seasonal factors in the March quarter continue to play a role, which should be normalized at the start of the next fiscal. This also provides an attractive opportunity for all categories of money market products.
“Changes in stock market volatility also make hybrid products more relevant in the current market environment,” the report noted.
