Corporate earnings growth is likely to be around 15 per cent in the next 12-18 months, which will drive the market to higher levels, a top Motilal Oswal Financial Services executive said on Friday.
"Earnings growth is likely to be around 15 per cent in next 12-18 months. Market index will go upward if that happens," joint managing director Ramdeo Aggarwal said in a conference here organised by ICICI Prudential MF here.
On the importance of equities as an asset class, he said it is the only investment which can beat inflation.
"Investors are highly under-invested in equities as of now and they should now look at putting money into equities for higher returns," ICICI Prudential MF chief investment officer S Naren said, expressing similar views.
He also noted that worst economic period was now behind us and the falling trend in GDP growth, investment growth and corporate earnings are now likely to be reversed.
Making a strong case for investing in equities, Mr Naren said market cap to GDP was very cheap and valuations are at attractive levels.
He, however, noted that outcome of general election remained a key trigger for the market movement.
"A weak coalition government post elections and government's expenditure reduction pose risk to growth in the near-term," he said.
He also said that fixed income products in the mutual fund space also provide sound investment opportunities.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
