Fundamental Tracker
Key Themes to Navigate in the Economic Landscape
Key Themes/ideas
- Capex
- 5G Roll Out
- Make in India
- Cyclicals Over Defensives
- Growth Over Value
- Duration Over Accrual
Asset Class & Marketcap Views
Key Highlights
Key Themes/ideas
- Global Slowdown
- Rise in Inflation
- Geopolitical Uncertainties
- Moderation in earnings
- Rise in commodity prices
In 2023, despite common market challenges, the Indian markets exhibited resilience, surging to achieve a market capitalization of $4 trillion.
A Closer Look at Valuation Concern
Here’s the rationale behind justifying the current market valuations
Despite reaching new highs, the Indian market’s 82% PE premium indicates a comparatively less expensive valuation than last year.
Factors driving the market’s premium valuation relative to other nations:
- Robust economic growth compared to other countries. India has the highest real GDP growth at 7.6% among emerging markets.
- A promising outlook for strong corporate earnings.
- Witnessing robust demand across various sectors
- The banking sector exhibits improved stability and resilience.
- Anticipating positive trends in private capital expenditure cycles
- The ruling party’s favourable performance in state elections contributes to market sentiment.
- Strengthening market confidence for political stability, anticipating continuity of macro policies in the 2024 general election.
Asset Class & Style Returns
Equities Surge, Bond Yield Decline Amid Signs Of Economic Moderation
Source: Bloomberg Barclays, FTSE, LSEG Datastream, MSCI, J.P. Morgan Asset Management. DM Equities: MSCI World; REITs: FTSE NAREIT Global Real Estate Investment Trusts; Cmdty: Bloomberg Commodity Index; Global Agg: Bloomberg Global Aggregate; Growth: MSCI World Growth; Value: MSCI World Value; Small cap: MSCI World Small Cap. All indices are total returns in US dollars. Past performance is not a reliable indicator of current and future results. Data as of November 2023
Overview: Global Markets
Equities Thrive on Economic Resilience, Small Caps Rally
Source: FTSE, LSEG Datastream, MSCI, S&P Global, TOPIX, J.P. Morgan Asset Management. All indices are total return in local currency, except for MSCI Asia ex-Japan and MSCI EM, which are in US dollars. Past performance is not a reliable indicator of current and future results. Data as of November 2023
