Five days back, in an interview, Harsha Upadhyay, CIO Equity, Kotak Mutual Fund, highlighted the below-mentioned points for financial advisors and equity investors –
- Domestic Institutional Investors (DIIs) turned net sellers for the first time since March 2017
- Foreign Institutional Investors (FIIs) came in as strong net buyers
- Over the long run, general elections have not had a visible impact on market direction.
- Large-cap NIFTY index expected to report high earnings growth of high teens in FY ending March 2020.
- Midcaps have corrected largely bringing their relative valuation to NIFTY – back to 2014 levels. 2014 was the time when the first leg of the current mid-cap bull rally began.
- Rolling one-year return differential between Nifty and Nifty Midcap 100 has reached a historical extreme.
- Volatility expected to continue further in the next few months
- Equity investors advised to make disciplined and regular investments with long term focus and not chase any momentum in the market.