Share market shows resilience, potential for 9-10% growth: Atul Suri

Nifty 50

The Indian share market is not in bubble territory, and NSE Nifty 50 still has the potential to rise another 9-10 percent from here, said Atul Suri of Marathon Trends. The Nifty is up about 15-16 percent over the last 2-year period, which is not much for the index, he said in an interview with CNBCTV18.

"When we look at data as a more continuous flow rather than a start point and end point, you realize that in ratios, we are nowhere near where we were in 2008 and 2018," Suri said, trying to assuage fears of a bubble building up. He reasoned that while Nifty was up 4-5 percent back in 2022, the small-cap index was down 14-15 percent. This year, in 2023, the small-cap index is making up for the period of underperformance.

According to ratio charts comparing large-cap and small-cap indexes, the markets are nowhere near the euphoric territory, said Suri.

Similarly, banking stocks, which have underperformed Nifty 50 so far this year, are on a breather after a stellar run in the previous year, he said. "Banks last year outperformed Nifty by a huge number. The fact is, banks are to some extent resting, and they will do a catch-up because the numbers coming out of the banking sector are very good," Suri said. "Banks (stocks) had already run up in anticipation of these numbers."

NSE Bank Nifty index has risen 12.07 percent since March 31.

He added that NBFC companies have been doing well. "If there was an NBFC index, it would have outstripped most of the banks."

Suri said that Marathon Trends PMS is positioned on capital goods, engineering, electrical equipment, and other such stocks which are domestically driven. "For many years, the market was focused on those few stocks that were focused on foreign entities like IT. I feel the trends have changed in the last few years. The whole emphasis is going to be more on the domestic-facing when the world is looking towards India," Suri added.