Considering the current path of the Indian stock market, marked by all-time highs and robust economic fundamentals, it doesn't seem like it's approaching a significant long-term peak anytime soon, said Vipul Bhowar, senior director listed investments at Waterfield Advisors in an interview to Moneycontrol.
On the pharma and healthcare space, he believes the ongoing innovation in drug development, combined with strategic adaptations to market changes and regulatory environments, indicates that these sectors can continue to deliver value for long-term investors.
On the flood of SME IPOs, "a balanced and careful approach is needed when evaluating the SME landscape in relation to IPOs," said Vipul with more than 15 years of experience in investment research & strategies, client portfolio performance management, equity research and business development.
Do you think the Indian markets are headed for a major long term top?
Considering the current path of the Indian stock market, marked by all-time highs and robust economic fundamentals, it doesn't seem like it's approaching a significant long-term peak anytime soon. While there might be some corrections, India's fundamental growth outlook remains strong, making it an appealing setting for long-term investments.
Are you betting on NBFC plays as rate cuts come into effect?
NBFCs are expected to outperform traditional banks as they have a significant portion of fixed-rate loans, which protects their revenues from falling interest rates. The sector is poised for growth due to favourable loan structures and increasing credit demand. However, individual company profiles will determine the extent of these benefits. Overall, there is optimism for NBFCs in the evolving financial landscape.
Is India a place for alpha generation?
India offers promising opportunities for alpha generation due to its unique market characteristics and strong economic growth prospects. Key strategies include focusing on small and mid-cap stocks, exploring sectoral opportunities, and dynamically allocating capital based on economic cycles.
Do you still see value in pharma and healthcare despite the run-up in the recent past?
Both pharmaceutical and healthcare sectors have recently experienced significant price movements, offering compelling investment opportunities. The ongoing innovation in drug development, combined with strategic adaptations to market changes and regulatory environments, indicates that these sectors can continue to deliver value for long-term investors.
Is it right to paint all the SMEs with the same brush, considering the demand for IPOs?
The SME IPO market has been very active, especially in 2024, with many companies experiencing high levels of oversubscription. However, it's important to note that not all SMEs are the same. This market includes both promising companies with strong growth potential and others that may pose risks to investors due to questionable practices or financial instability. Therefore, a balanced and careful approach is needed when evaluating the SME landscape in relation to IPOs.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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