'Index funds are far from being a passing trend'

How is your team viewing the current market valuations and preparing for possible corrections? The ongoing rally has encompassed all sectors, from Investments to Consumption and Exports. Consequently, markets are relatively expensive compared to about a year and a half ago, when one could find value. Over the past 3-4 years, many sectors experienced earnings upgrades through topline and margin surprises. However, as this phase ends, it's unrealistic to anticipate that margin surprises will continue happening quarterly for every company. Therefore, consolidation is expected. We have repeatedly highlighted that markets may never go straight but might witness bouts of consolidation or volatility. Nonetheless, one should remain invested rather than tr

This article was originally published on October 24, 2024.