India's Economic Stability Bolstered By Fortress Balance Sheet, Says Emkay Panel— NDTV Profit Exclusive

Emkay’s top executives—Karwa, Seshadri Sen, head of research and strategist and Nirav Sheth, chief executive officer of institutional equities—shared their insights on key sectors and future outlook, in an exclusive interview with NDTV Profit.

Despite foreign portfolio investors recently pulling out Rs 17,000-18,000 crore from the market, domestic investors have matched this amount, which shows the resilience of the Indian market, according to Karwa. India's strong fiscal position and solid corporate balance sheets are key factors in maintaining this stability, he said.

Sen focused on the banking and financial sector, noting that while current valuations may seem high, there are still attractive opportunities. Future rate cuts by the US Federal Reserve could impact Reserve Bank of India's decisions, he said. The stable 10-year bond yield below 7% reflects a positive financial environment for equity investors.

While there are regulatory and profitability pressures in the banking sector, non-banking financial companies and capital markets might offer viable investment avenues despite their cyclical nature, Karwa said.

Sen agreed, recommending cautious investment in capital markets due to their growing potential.

The top executives are optimistic on agrochemicals and pharmaceuticals sectors. The agrochemicals sector continues to benefit from increasing agricultural productivity and innovation, making it an attractive investment area, Karwa said.

Meanwhile, the pharmaceuticals sector is poised for growth due to rising global demand and advancements in drug development. Both sectors are expected to offer substantial opportunities for long-term investors, given their fundamental strengths and growth prospects, according to the panel. 

As for overall investment strategies, Sheth advised maintaining a full investment in equities and focusing on long-term growth rather than attempting to time the market. Rebalancing portfolios according to risk appetite and asset allocation remains crucial for long-term investors, Karwa said.

Emkay’s top executives—Karwa, Seshadri Sen, head of research and strategist and Nirav Sheth, chief executive officer of institutional equities—shared their insights on key sectors and future outlook, in an exclusive interview with NDTV Profit.

Despite foreign portfolio investors recently pulling out Rs 17,000-18,000 crore from the market, domestic investors have matched this amount, which shows the resilience of the Indian market, according to Karwa. India's strong fiscal position and solid corporate balance sheets are key factors in maintaining this stability, he said.

Sen focused on the banking and financial sector, noting that while current valuations may seem high, there are still attractive opportunities. Future rate cuts by the US Federal Reserve could impact Reserve Bank of India's decisions, he said. The stable 10-year bond yield below 7% reflects a positive financial environment for equity investors.

While there are regulatory and profitability pressures in the banking sector, non-banking financial companies and capital markets might offer viable investment avenues despite their cyclical nature, Karwa said.

Sen agreed, recommending cautious investment in capital markets due to their growing potential.

The top executives are optimistic on agrochemicals and pharmaceuticals sectors. The agrochemicals sector continues to benefit from increasing agricultural productivity and innovation, making it an attractive investment area, Karwa said.

Meanwhile, the pharmaceuticals sector is poised for growth due to rising global demand and advancements in drug development. Both sectors are expected to offer substantial opportunities for long-term investors, given their fundamental strengths and growth prospects, according to the panel. 

As for overall investment strategies, Sheth advised maintaining a full investment in equities and focusing on long-term growth rather than attempting to time the market. Rebalancing portfolios according to risk appetite and asset allocation remains crucial for long-term investors, Karwa said.