Valuation discipline is fundamental to long-term wealth creation. In a market often driven by momentum, one should focus on the fundamentals of companies rather than chasing trends, Anish Tawakley, chief investment officer - equity, Icici Prudential AMC Co, writes
The large-cap segment has experienced significant FII (Foreign Institutional Investor) selling, which has tempered valuations and appear much better placed compared to mid- and small-cap stocks
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Despite much that has been written about the US economy, India’s economic outlook will depend on what we do domestically. We run a small current account deficit (of around 1.2 percent of GDP) for FY25. Growth will depend on sustained domestic demand, particularly from urban areas where construction and home building will create jobs. Manufacturing will then follow real estate.
Rural demand is a byproduct of urban demand and it will depend on two things: Output, which is largely agriculture proceeds, and transfer of payments (from jobs in urban India).
There was a soft patch in the first half of 2024 when government spending was restrained. The hope will now be for the RBI to start cutting interest rates to stimulate demand. Once we have the right policies, the economy tends to respond quite fast. There is no reason why there should be a slackening in the economy.
(This story appears in the 24 January, 2025 issue of Forbes India. To visit our Archives, click here.)