According to NDTV Profit, Pankaj Tibrewal, founder and CIO of Ikigai Asset Manager, believes India is entering an interesting phase as corporate earnings show resilience and demand improves across several sectors. Speaking to NDTV Profit, Tibrewal said the last two years of subdued market returns are part of the normal market cycle and that investors should not expect markets to deliver 15-20% returns every year. He emphasized that improving corporate earnings, stronger demand and potential FPI flows could support India's market outlook, while cautioning against high US market valuations. His interactions with companies across sectors suggest that demand is no longer the biggest concern, instead companies are increasingly focused on supply chains as they plan for stronger growth. The latest earnings season has also been better than expected, with broad-based strength across large-, mid- and small-cap companies.
As reported by NDTV Profit, Tibrewal anticipates foreign portfolio investor flows to India to improve in the second half of the year. He pointed to foreign currency deposit inflows, bond market flows and greater stability in the rupee as signs of improving investor confidence. According to Tibrewal, many global investors had earlier stayed underweight on India, but the improving earnings picture and stable currency are making them reconsider their positions. However, strong earnings in the US remain a challenge, as there is less reason for investors to move money out of the US while its companies continue to report strong growth.
According to Moneycontrol, Abhay Agarwal of Altius Investment Fund expects the economy to move towards 8% real GDP growth, translating into 12-13% nominal GDP growth and potentially 16-18% corporate earnings growth. This optimistic outlook is supported by improving economic indicators, rising industrial production, accelerating bank credit and a revival in corporate earnings. The combination of stronger economic growth and earnings upgrades could eventually bring foreign investors back to Indian equities, with the festive season approaching as a key catalyst for broader market participation.
As reported by NDTV Profit, Tibrewal remains positive on metals and mining, citing geopolitical tensions, limited resources and years of underinvestment in new mines. He also sees opportunities in manufacturing and other hard assets. According to him, companies outside the top 100 by market value could grow significantly over the next three to five years if they have strong management, balance sheets, cash flows, and competitive businesses. Moneycontrol reports that auto ancillaries and paints remain preferred sectors, while IT services are on the radar but await a recovery in revenue growth. His broader message for investors was simple: to remain patient through market volatility and have faith in India's long-term growth story, with his one-line recommendation for India's journey towards 2047 being 'Buy India'.
