{"id":3721,"date":"2025-02-14T13:56:05","date_gmt":"2025-02-14T13:56:05","guid":{"rendered":"https:\/\/nrimoneyclinic.com\/V1\/?p=3721"},"modified":"2025-04-02T15:11:26","modified_gmt":"2025-04-02T15:11:26","slug":"should-you-be-buying-now-insights-from-shridatta-bhandwaldar-canara-robecco-mf","status":"publish","type":"post","link":"https:\/\/nrimoneyclinic.com\/V1\/should-you-be-buying-now-insights-from-shridatta-bhandwaldar-canara-robecco-mf\/","title":{"rendered":"Should You Be Buying Now? Insights from Shridatta Bhandwaldar, Canara Robecco MF"},"content":{"rendered":"\n

The Indian stock market has been a roller coaster lately. The Sensex hit an all-time high of 86,000<\/strong> but later slipped to around 78,000\u201379,000<\/strong>. While a brief post-election recovery brought hope, volatility has returned. So, what\u2019s behind these market swings?<\/p>\n\n\n\n

Why Are Markets So Volatile?<\/strong><\/h3>\n\n\n\n

Market ups and downs are nothing new, but this year is different. Unlike FY24, which saw robust earnings growth of 30-35% in a supportive economic environment, FY25 is telling a slower, more cautious story.<\/p>\n\n\n\n

Let\u2019s break it down.<\/p>\n\n\n\n

1. Earnings Growth Has Slowed<\/strong><\/h4>\n\n\n\n

In FY24, Nifty earnings grew by an impressive 23-24%<\/strong>, but the first half of FY25 has seen this growth slow to low single digits<\/strong>.<\/p>\n\n\n\n

Here\u2019s why:<\/p>\n\n\n\n

    \n
  • Election Impact:<\/strong> The Code of Conduct during elections slowed government decisions and capital spending.<\/li>\n\n\n\n
  • Rain Trouble:<\/strong> Excessive monsoons disrupted businesses and infrastructure.<\/li>\n\n\n\n
  • Low Wedding Season:<\/strong> Weddings\u2014major economic drivers\u2014dropped to historic lows, dampening spending and growth.<\/li>\n<\/ul>\n\n\n\n

    These factors pushed growth estimates down. Initially projected at 12-14%<\/strong> for FY25, earnings growth is now expected to hover between 6-10%<\/strong>.<\/p>\n\n\n\n

    2. High Valuations, Low Growth<\/strong><\/h4>\n\n\n\n

    When stocks are already expensive, slower growth amplifies the chances of a market correction. This combination has been at play in India.<\/p>\n\n\n\n

    Is This a Long-Term Concern?<\/strong><\/h3>\n\n\n\n

    Not really. The slowdown seems to be temporary and contextual<\/strong> rather than a sign of deeper trouble. Here\u2019s why:<\/p>\n\n\n\n

      \n
    • Indian companies and banks have strong balance sheets.<\/li>\n\n\n\n
    • The real estate sector isn\u2019t over-leveraged.<\/li>\n\n\n\n
    • The government remains focused on reforms and infrastructure investments.<\/li>\n\n\n\n
    • India\u2019s domestic and global economic fundamentals are stable.<\/li>\n<\/ul>\n\n\n\n

      Why Are Foreign Investors Selling?<\/strong><\/h3>\n\n\n\n

      Foreign Institutional Investors (FIIs) have pulled out $10-12 billion<\/strong> recently, which might sound alarming. But here\u2019s the context:<\/p>\n\n\n\n

        \n
      • FIIs hold a massive $800 billion<\/strong> in Indian markets. The recent outflow is just 1%<\/strong> of their total holdings.<\/li>\n\n\n\n
      • High valuations and disappointing corporate earnings have made Indian markets less attractive.<\/li>\n\n\n\n
      • Global trends show FIIs shifting focus to U.S. markets, where tax cuts and pro-growth policies offer better opportunities.<\/li>\n<\/ul>\n\n\n\n

        This isn\u2019t just about India. Other emerging markets are seeing outflows too, with the U.S. alone receiving $47 billion<\/strong> in a single month.<\/p>\n\n\n\n

        How Do Global Factors Affect India?<\/strong><\/h3>\n\n\n\n

        1. U.S. Policies<\/strong><\/h4>\n\n\n\n

        While U.S. elections bring concerns about tariffs and visa policies, India is in a relatively safe spot:<\/p>\n\n\n\n

          \n
        • India\u2019s trade deficit with the U.S. is minimal compared to China.<\/li>\n\n\n\n
        • Most Indian exports to the U.S. are services, which are less prone to sudden policy changes.<\/li>\n\n\n\n
        • India\u2019s strategic importance as a counterbalance to China strengthens its relationship with the U.S.<\/li>\n<\/ul>\n\n\n\n

          2. U.S. Interest Rates<\/strong><\/h4>\n\n\n\n

          The U.S. Federal Reserve\u2019s interest rate decisions ripple through global markets:<\/p>\n\n\n\n

            \n
          • Lower Rates, Higher Inflows:<\/strong> If U.S. rates drop, emerging markets like India become more attractive to investors.<\/li>\n\n\n\n
          • Weaker Dollar:<\/strong> A weaker dollar can boost India by stabilizing the rupee and encouraging foreign investment.<\/li>\n<\/ul>\n\n\n\n

            The Domestic Picture<\/strong><\/h3>\n\n\n\n

            Government spending and reforms are key to India\u2019s growth story:<\/p>\n\n\n\n

              \n
            • Planned Spending:<\/strong> FY25\u2019s capital expenditure growth is projected at 10-12%<\/strong>, slightly lower than FY24 but aligned with a shift toward private sector-led investments.<\/li>\n\n\n\n
            • Reforms in Action:<\/strong> Infrastructure development, renewable energy initiatives, and the Production-Linked Incentive (PLI) scheme are boosting India\u2019s global competitiveness.<\/li>\n<\/ul>\n\n\n\n

              These factors create a stable foundation for long-term growth.<\/p>\n\n\n\n

              What Should Investors Do?<\/strong><\/h3>\n\n\n\n

              For investors, this is a time for strategic patience. India\u2019s macroeconomic fundamentals are strong, and its growth potential remains intact. Here\u2019s how to approach the current market:<\/p>\n\n\n\n

                \n
              • Think Long-Term:<\/strong> Focus on India\u2019s consistent 9-11% nominal GDP growth<\/strong> and corporate earnings growth of 12-15%<\/strong>.<\/li>\n\n\n\n
              • View Volatility as Opportunity:<\/strong> Use market corrections to increase allocations in sectors with strong growth potential.<\/li>\n<\/ul>\n\n\n\n

                The Bottom Line<\/strong><\/h3>\n\n\n\n

                Short-term turbulence is part of the stock market game, but India\u2019s structural strengths and reforms make it a promising investment destination. Whether you\u2019re an NRI or a local investor, staying invested and confident can pay off in the medium to long term.<\/p>\n\n\n\n

                Stay calm, stay invested, and ride the wave of India\u2019s growth story!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

                The Indian stock market has been a roller coaster lately. The Sensex hit an all-time high of 86,000 but later slipped to around 78,000\u201379,000. While a brief post-election recovery brought hope, volatility has returned. So, what\u2019s behind these market swings? Why Are Markets So Volatile? Market ups and downs are nothing new, but this year […]<\/p>\n","protected":false},"author":1,"featured_media":3728,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[121,124],"tags":[],"class_list":["post-3721","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","category-economy"],"acf":[],"jetpack_featured_media_url":"https:\/\/nrimoneyclinic.com\/V1\/wp-content\/uploads\/2025\/02\/14-2-1.png","_links":{"self":[{"href":"https:\/\/nrimoneyclinic.com\/V1\/wp-json\/wp\/v2\/posts\/3721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nrimoneyclinic.com\/V1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nrimoneyclinic.com\/V1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nrimoneyclinic.com\/V1\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nrimoneyclinic.com\/V1\/wp-json\/wp\/v2\/comments?post=3721"}],"version-history":[{"count":1,"href":"https:\/\/nrimoneyclinic.com\/V1\/wp-json\/wp\/v2\/posts\/3721\/revisions"}],"predecessor-version":[{"id":3729,"href":"https:\/\/nrimoneyclinic.com\/V1\/wp-json\/wp\/v2\/posts\/3721\/revisions\/3729"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nrimoneyclinic.com\/V1\/wp-json\/wp\/v2\/media\/3728"}],"wp:attachment":[{"href":"https:\/\/nrimoneyclinic.com\/V1\/wp-json\/wp\/v2\/media?parent=3721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nrimoneyclinic.com\/V1\/wp-json\/wp\/v2\/categories?post=3721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nrimoneyclinic.com\/V1\/wp-json\/wp\/v2\/tags?post=3721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}