Nifty: ETMarkets Investors’ Guide: Is the equity party finally getting over

Volatility has risen quite a bit in the equity market as inflation fears are stoking bond yields, which are making investors jittery. Investors are unsure even as more money is flowing into the market in the form of fresh US stimulus, and the ECB pledge to step up asset purchases.

After a 100 per cent rally from March lows, stock valuations look stretched. Will earnings growth catch up fast and soothe investor nerves?

ETMarkets caught up with Chintan Haria, Head of Product Development & Strategy, ICICI Prudential AMC, to understand what investors should do in such a volatile market.

Sir,

Welcome to the show.

1. Balanced advantage funds have brought down equity exposure by about half from the March 2020 levels. This is the lowest equity holding seen in last 22 months. What would explain this? Do you think the party is largely over on Dalal Street and one should taper return expectations. What is your message for retail investors?

2. Is the current Indian market valuation tenable? What can bring equities back to attractive levels?

3. How worried should an investor be in the light of the rally in crude oil prices and US 10Y Treasury Yields? Do you think earnings growth projections for the next couple of quarters is already in the price?

4. Value as a theme has made a strong comeback over the past two months. Do you reckon the best growth theme is behind us?

5. In the times ahead, the macro-economic environment is likely to take the centerstage. Do you see a case for change in sectoral leadership?

6. What would be your advice to retail investors with less than a year of investing experience?

Thank you Mr. Haria

That’s it in this week’s edition of special weekend podcast. You can check out our regular podcasts on the equity market twice every week day.