The Sensex and the Nifty have hit new highs recently. Do the current market valuations reflect a balance between the earnings growth of India Inc. and the market run-up? In this episode of the State of the Economy podcast, businessline’s Parvatha Vardhini C and Sumit Jain, Deputy Chief Investment Officer, ASK Investment Managers, discuss the trends that will drive the Indian markets in 2024.

In the podcast, Jain explained that investing in businesses should be based on their specific merits and potential growth, and cited the importance of earnings delivery and longevity in the market. He also predicted a decent earnings growth for the Nifty to continue in the year ahead. He acknowledged that there are multiple challenges such as global economic slowdown and rural sector issues that could play spoilsport in the short-term. However, he clarified that while the market may fluctuate, the long-term growth prospects for India appear positive.

Regarding investment strategy, Jain stressed the importance of investing in businesses with solid fundamentals, strong management, and high return on capital employed, irrespective of short-term market events. He also predicted opportunities in the larger manufacturing segment, capital goods, logistics, premium consumption, and finance, aligning with India’s potential for growth in manufacturing and domestic resurgence. 

The conversation also touches on the outlook for the US economy and the Chinese slowdown and its possible effects on India Inc and Indian markets in 2024. 

Listen to this podcast to gain an understanding of Jain’s market outlook and his investment philosophy. 


About the State of the Economy podcast 

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups