Vinay Paharia, the CIO of PGIM India Mutual Fund, expressed cautious optimism about the market from a medium-term perspective. He mentioned that while the markets are currently trading at a premium to their fair value, this fair value is expected to grow significantly in the medium term.
Paharia emphasized that globally, there's a slowdown in growth in developed markets due to elevated interest rates and persistent inflation, impacting export-oriented businesses.
In the Indian context, the focus is on the uptick in discretionary demand during the ongoing festive season and government measures to boost rural consumption.
Looking ahead to 2024, Paharia acknowledged potential volatility due to the Union Elections scheduled in May but considers these factors transient. He advises long-term investors to look beyond these near-term challenges and leverage the long-term growth potential of the Indian market.
In October 2023, the market experienced consolidation, with the NIFTY 50 index declining by 2.8%. Global weaknesses, including the Israel-Hamas conflict, rising US bond yields, and concerns about potential rate hikes, contributed to this downturn. T
he NIFTY Midcap 100 index and NIFTY Smallcap 100 index saw corrections of 4.1% and 0.8%, respectively.
Sector-wise, healthcare, metals and mining, and financials underperformed, while realty, FMCG, and auto sectors outperformed the broader market during the month.
(With Agency Inputs)
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