“The overall market outlook depends on the gains made by individuals and their specific circumstances. Regardless of the political leadership, the underlying earnings resilience of Indian corporates is noteworthy from a medium-term standpoint,” Bhattacharya said.
For example, the real estate sector in India demonstrated resilience, with unsold inventory at a 12-year low. This contrasts with the situation in other parts of the world, such as China or the USA, where the picture is bleaker, he said.
Despite experiencing two weak years of growth following the Covid pandemic, followed by two strong years, and an anticipated normalised year of growth in FY25, India still exhibits pockets of earnings resilience, Bhattacharya said.
He expects the growth rate to be around 15–17%, which is considered fairly resilient and well-distributed across sectors within the context of the last 20 years of India’s economic performance, even though it may be lower than in previous years.
“Don’t undermine the earnings resilience of India as yet, and some pockets within the country are very country specific and very bottom-up, and that needs to be taken into cognizance. Use the volatility to increase the position, rather than sell on the rally and stay in cash,” he advised.