The quality of companies entering the primary or secondary market in both global and Indian contexts is decent, but the valuation offered by them requires some discussion, according to Kaustubh Kulkarni, SCO and vice chair, Asia Pacific at JPMorgan.
Kulkarni highlighted that substantial regulatory scrutiny for the IPO's and follow-up transactions has helped maintain the quality of the companies. “From the governance and disclosure point of view, it's well taken care of.”
The key question remains at what price is the market willing to accept these offerings, he said. Thus, the focus is primarily on the valuation discussion.
Earnings growth of large-cap companies is expected to be healthy, he said.
Overall earnings growth for large-cap companies in calendar year 2025 appears promising, Kulkarni said. The Indian markets are expected to achieve healthy growth, he said.
“Fundamentally, the growth that the Indian markets is expected to deliver is well understood and appreciated by the investors,” he said.
Investors are particularly interested in identifying sectors that can deliver significant growth, as India has a history of recognising and partnering with growth opportunities before they become apparent, he said.
Kulkarni emphasised that there is a clear focus on areas such as energy transition, infrastructure monetisation, and consumer fintech, as well as other emerging businesses within the digital and physical banking frameworks. The key question is how these companies will grow and capture market share, he said.
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