Tuesday 6 November 2018


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During samvat 2074, financial markets in India went through major changes in terms of valuations, liquidity and sentiment. Due to the tightening cycle in the US, markets in India witnessed record selling by foreign investors both in debt and equity market. Also, commodities have seen rebounded with crude trading above $70/bbl from $50 a year ago. These moves have resulted in rupee falling from levels of 65 per dollar to 73 per dollar.

Nifty that was trading at 22.2 times forward earnings is now trading at 20 times. More importantly, mid and small-cap indices that were trading at historic high valuations have seen significant correction over last one year.


Going forward, we believe Indian economy has undergone tremendous structural change with reforms like GST and IBC. Also, we are on the cusp of earnings revival for Indian corporate. Profit of listed Indian companies as a percentage of GDP is at lows.

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