'The trend will still be upward, but valuation is a discomfort'

Gaurav Misra has helmed Mirae Asset Large Cap Fund and Mirae Asset Focused Fund since 2019, both of which have rewarded its investors handsomely in the long run. However, given these funds' tepid show in the last couple of years, we wanted to know why they were underperforming. During our interview, Misra also speaks about his AMC's affinity for new-age companies and how he views the current market. Here's the edited excerpt. With Indian markets at an all-time high, what's your take on the sustainability of this red-hot rally? What are the biggest headwinds and tailwinds for Indian equities at this point? The rally is a reaction. It may be a preponement of buying. Overseas investors might have been waiting for the general election (before participating in Indian markets). However, the outcome of recent state elections may have bolstered their belief that there may be no uncertainty around the general election. When this happens, it feeds into itself. Others jump in because of FOMO, too. That said, I am not sure how long it will continue. Moreover, this part of the year is normally good for equities, with an upward bias in seven to eight out of 10 years. Mid and small caps have already done well and tend to do well during this month. And then, with China being a bit out of favour, liquidity-led buying can also continue for longer, maybe with some consolidation. A year back, there were a lot of concerns about equity returns, but we were very constructive that it should do well in 2023. I think that still holds with more than a two-year perspective. However, there will be volatility as valuations are getting ahead now. At least from the current

This article was originally published on December 22, 2023.