No Cheers For Nifty's Record High As Portfolio Gains Lag, Quant MF's Sandeep Tandon
Tandon is constructive on Indian markets. He said that all things put together, the background is perfect for a rally.
There is no excitement despite the NSE Nifty 50 index hit a new high on Thursday as investors' portfolios did not perform well, said Quant Mutual Fund Founder Sandeep Tandon. However, he said that in the current situation, investors should participate rather than sitting on the sidelines.
The background of the market is excellent, according to Tandon. Gradually, the rally will get extended to mid and samllcaps. The asset management company has been positive for the large-cap stocks for sometime.
India has low beta and negative co-relation with developed markets. Global markets have corrected recently. Bucking the trend, Indian markets did not correct at all. It has been consolidating with positive bias.
Meanwhile, the asset management company believes that Indian markets will remain expensive for another 20–22 years, when the demographic cycle peaks in 2047, Tandon said.
Tandon prefers to wait till January before taking a call for 2026. As of now, he is observing the October–December period. According to him, it is a better approach rather than getting carried away by long-term outlook.
The Government is focusing on the ease of doing business. The recent labour policy brought together four policies to simplify rules. The biggest concern is judicial reforms, which the country requires. Once India gets these, the traction is excellent. All these steps lead to re-rating of a country rather than looking at one sector, he said.
The ease of doing business is hard to implement. The Government has showed that it can implement it with recent policy reforms, he said.
The impact of GST 2.0 is a time-consuming process. Markets like to get excited beforehand. Logically, consumption should pick up. All things put together, the background is perfect for a rally.
Market participants may choose to broaden their perspective on trade. The Government is focusing on building bilateral trade relationships with multiple countries. The country is moving to diversify trade relationships rather than focusing on one country.
Indian corporates and entrepreneurs are also diversifying as they understand the impact of concentration.
