Posted 2/13/2024, 3:41:00 AM
Earnings Growth Strong but Valuations Stretched; Prefer Largecaps, Auto and Real Estate Stocks Amid Geopolitical Uncertainty
- Corporate earnings growth remains strong, though valuations are high especially for mid and small caps
- Preference is for largecaps given favorable risk-reward; positive on autos, auto ancillary, building materials and real estate
- Key risks - geopolitical tensions, global interest rates, any slowdown in corporate earnings growth
- Mass consumption lagging premiumisation; its recovery will impact markets
- For SIP investors, continue investments as per asset allocation; some consolidation/volatility likely in near term