Nimesh Chanda On Indian Stock Market Outlook: Nimesh Chandan, Chief Investment Officer at Bajaj Asset Management, remains bullish on the capital markets megatrend and believes several parts of the Indian equity market could continue to offer opportunities despite elevated oil prices and expectations of further rate hikes.
In a conversation with NDTV Profit, Chandan said market indicators are pointing towards positivity and highlighted private banks, pharma, commodities, artificial intelligence and the digital space as areas he remains positive on.
Nimesh Chandan Bullish On Capital Markets Megatrend
Chandan said he remains bullish on the capital markets megatrend, while also maintaining a positive view on private banks.
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He is also long-term positive on pharma, commodities and AI, while saying he is excited about the digital space.
Small Caps To Continue Outperforming
On market trends, Chandan said small-cap stocks will continue outperforming, while quality stocks have been underperforming for some time.
He also said growth stocks are doing better than value stocks, pointing to the ongoing preference for growth-oriented companies in the market.
45% Companies In Coverage Beat Q1 Estimates
Chandan said 45% of the companies in Bajaj Asset Management's coverage beat earnings estimates in Q1, providing a positive backdrop for the earnings outlook.
The earnings performance remains an important factor as investors assess the strength of corporate growth and the broader market environment.
Oil Prices High Currently, But Not Alarming
On crude oil prices, Chandan said oil prices are currently high but not alarming.
He added that the market is not too worried about elevated oil prices and believes investors are prepared for more rate hikes.
Nifty Intrinsic Value At 27,000
Chandan said he believes the intrinsic value of the Nifty is 27,000.
He also pointed to indicators turning positive and said India is doing better on the macroeconomic front, providing support to his broader market view.
Market Is “In A Mix Of Things"
According to Chandan, the market is currently "in a mix of things”, with investors weighing factors including oil prices, interest rates, earnings and broader macroeconomic conditions.
Despite elevated crude prices and the possibility of additional rate hikes, his outlook remains positive on the capital markets megatrend and selected long-term growth themes.
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