'We are seeing strong traction in our passive business'

How is your team viewing the current market valuations and preparing for possible corrections? We believe the large-cap index is valued in line with the last 10-year average. This implies that the returns from the index should track earnings growth seen in the space. The mid-cap index is trading higher than large-cap valuations by 50 per cent, and the small-cap index is trading higher than the large-cap index by 15 per cent. At Motilal Oswal AMC, we believe this period is unlike what we have seen earlier. Many new businesses with a long growth trajectory and a good quantum of growth have emerged over the past few years. For example, EVs (electric vehicles), EMS (electronics manufacturing services), new tech, renewable, etc, are all new and delivering strong growth. Besides these, businesses like hospitals, def

This article was originally published on October 30, 2024.