India's Economic Growth on a Steady Path; Equity Markets in a Phase of Adjustment
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Mumbai, Dec 14 (NationPress) The economic vigor of India is projected to see a resurgence in the latter half of FY25, fueled by an uplift in government capital expenditure following the elections, improved rural spending, and the influence of the festive season, according to a report by Motilal Oswal Private Wealth (MOPW) released on Saturday.
The growth trajectory remains robust, establishing India as one of the fastest-growing significant economies worldwide, characterized by comparatively low volatility and consistent growth, as highlighted in the Alpha Strategist Report.
The equity markets are currently experiencing a consolidation phase after witnessing a correction in the range of 10-12 percent in the benchmark indices.
“In light of the recent market correction, large-cap valuations have become appealing. Investors should consider a lump-sum investment strategy for Hybrid, Large, and Flexi-cap funds, while also taking a staggered approach over three months for select mid- and small-cap strategies,” the report advised.
Foreign Institutional Investors (FII) have turned net buyers after 38 trading days, injecting Rs 9,947 crore into the markets.
“The Indian economy remains robust, with indications that growth is gradually returning to a favorable path. Therefore, we maintain an optimistic outlook for the equity markets in the long run,” the report stated.
It urged investors to proceed cautiously by implementing a strategy that is both balanced and resilient.
“Investors who have the suitable equity allocation according to their risk profile can continue to remain invested,” the report noted.
In light of the recent corrections, if equity allocations fall below desired levels, investors are encouraged to increase their allocation through a lump-sum investment strategy for Hybrid, large, and flexicap strategies, as well as a 3 to 6-month approach for select mid and small-cap strategies, particularly during significant corrections.
“Given the changing interest rate landscape, the fixed income portfolio should prioritize Accrual Strategies and maintain a Neutral stance on Duration Strategies,” the report concluded.
