Equity Market Outlook
Long-term outlook remains intact:
- Over the short-term, budget and Q1FY25 earnings will be monitored closely.
- Earnings growth is expected to be steady, and consistent earnings growth over the next several quarters will be crucial to sustain market performance as valuations are high.
- Long-term drivers include private capital expenditure, infrastructure spending, pick up in rural consumption on back of steady monsoons, and global growth trends.
- Large caps continue to offer better risk-reward opportunities vis-à-vis mid and small caps, where valuations are expensive.