As the NSE Nifty 50 remains skewed with the market heavily invested in a handful of stocks, Tata Mutual Fund's Rahul Singh said investors are paying hefty premiums on growth visibility, not high growth.
“In a general market—in India as well as the world—where growth is slowing down, there's a premium for visibility of growth even if that growth is a little bit on the lower side,” Tata Mutual Fund's chief investment officer of equities told BloombergQuint. Companies with higher growth visibility will command a significant premium over those that are “a little dicey”, he said.
Singh said the markets are currently rewarding companies and businesses that can grow sustainably at 10-12 percent instead of looking at those which can grow 15-20 percent.
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