InCred PMS expects market returns to be in line with the earnings growth with limited room for the P/E multiple to expand. There is a divergence in valuation in many sectors, which could be a constructive environment for bottom-up stock picking, Aditya Sood of InCred PMS says in an interview to Moneycontrol.
After the November policy meeting, the head portfolio and fund manager at InCred PMS with over 17 years of experience in equity markets, largely spanning fund management and research, says the yield curve is inverted leading them to believe that the US Federal reserve would possibly do two rate hikes of 50bps and 25 bps and should eventually pause at a 5 percent level.
Do you expect another 75 bps interest rate hike by Federal Reserve?
There is a significant correlation between the M2 growth and the CPI, the money supply growth has tapered down sharply inflation should taper down, core inflation would be a key monitorable.