- Indian equities may rise nearly 30% in the next 12 to 18 months, says Atul Suri
- Nifty is expected to reach 30,800, with the worst market phase now behind us, according to Suri
- Suri is bullish on metals, industrials, and data centre suppliers for future growth
Indian equities could deliver nearly 30% upside over the next 12 to 18 months, according to market veteran Atul Suri, who said he expects the Nifty to touch 30,800 over the period, while maintaining that the worst phase for the market is now behind us.
Speaking at the NDTV Profit Townhall, Suri said he does not see "a big price damage" in the Indian market and believes "those who can withstand time will be rewarded". While he acknowledged that momentum is currently not in the market's favour, he said the narrative around Indian equities would change once the global AI trade cools off.
Suri said global money is currently moving towards the AI trade, adding that India's premium of the past decade has eroded over the last two years. He also noted that India is in a "painful spot", particularly with respect to the currency, but stressed that he does not believe the Indian market is in a crisis.
Sectoral Bets
On sectors, Suri said he is very bullish on metals and industrials, seeing a super-cycle in the industrials theme, while noting that metals are moving out of decades of consolidation. He also remained positive on companies supplying data centres, saying the segment will see the largest capital expenditure (Capex) over the next two years.
What Should Investors Do?
He said that investors should focus on long-term earnings momentum and themes where earnings momentum is strong. According to Suri, metals and pharma are among the best-performing sectors currently, while IT and FMCG have been the worst-hit.
He also expects the weightage of mid-cap stocks to rise over time, while that of large-cap stocks could decline.
Suri said alpha in the Indian market is created by momentum and expressed confidence that the market will produce multiple multibaggers going forward. He also believes textiles are an underrated sector and could emerge as a two- to three-year investment theme.
Bear Case Nifty Target
Despite his bullish outlook, Suri pegged his bear-case target for the Nifty at 22,000. He also pointed out that the Nifty Next 50 has outperformed the Nifty 50 by almost 10%.
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