BackIndia’s long-term story intact; market performance to moderate in 2015: Kotak MF
The Union budget reiterates that the improvement in investment climate and long-term growth story is intact
PremiumMumbai: Kotak Mutual Fund is optimistic on the prospects for Indian stock markets in 2015 on the back of inflows from domestic and foreign investors, but expects moderated returns this year for Indian equities compared to 2014.
The Union budget reiterates that the improvement in investment climate and long-term growth story is intact. With next state election slated towards the end of the year, one can expect further reform announcements by government and ordinances to become laws, according to the asset management company.
BSE’s benchmark equity index – Sensex rose 29.9% in 2014, and is up 4.2% for the year to date.
Foreign institutional investors (FIIs) had pumped in a net of $16.2 billion in Indian shares in 2014, and have invested a net of $5.4 billion in the asset class for the year to date.
Domestic institutional investors were net sellers of Indian equities to the tune of ₹ 30,884 crore in 2014, and have sold a net of ₹ 6,214.9 crore of Indian equities so far in 2015, but Kotak Mutual Fund expects them to be net buyers for this year after a long gap.
“Probably 2015 will be the first calendar year in last six years, when both foreign as well as domestic segment of institutional investors will be on the buy side. It was never the case in the last five years," Harsha Upadhyaya, chief investment officer, equity at Kotak Mutual Fund told reporters at a press conference.
Upadhayaya added that it was a fairly valued equity market, and while corporate earnings can disappoint in near term, improving macro-economic environment will aid in sustaining valuations.
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