'Market not expensive or in value zone, don't see sharp correction'

How is your team viewing the current market valuations and preparing for possible corrections? Indian equity markets are trading at their last five-year average, neither expensive nor in the value zone. Consensus earnings expectations are reasonable in the low teens. We don't expect a sharp correction from a fundamental view. Historically, sharp corrections followed major global events like the Global Financial Crisis and Covid-19. Our ability to predict such black swan events is low, but we're monitoring international developments, especially in the Middle East. During market uncertainties, we adopt a defensive portfolio. At Baroda BNP Paribas Mutual Fund, We're overweight on Pharma, Consumption and IT sectors, and don't believe in cash calls, barring tactical reasons. Are index and factor-based passiv

This article was originally published on October 25, 2024.