According to reports from CNBC TV18, Rupal Bhansali, Founder, CEO & CIO & Portfolio Manager–Global Equities at Double Duty Money Management, maintains her bearish stance on Indian equities despite recent market corrections. The Nifty 50 has declined nearly 11% since her last conversation with CNBC TV18 on February 17, when the index was trading above 25,700. However, Bhansali believes the correction reflects external factors rather than a fundamental valuation reset, stating that the price-to-earnings ratio has decreased to 17.4 times one-year forward earnings from nearly 20 times on February 17. She continues to argue that more correction is warranted given current market conditions.
As reported by CNBC TV18, Bhansali attributes the recent market decline to global economic pressures, particularly the Iran war's inflationary impact on Asian economies as net oil importers. She emphasizes that inflation remains sticky and rising, interest rates are higher, and equities must compete by lowering multiples. The fund manager believes this setup is particularly challenging for Indian markets, suggesting that the correction reflects these global realities rather than a fundamental valuation reset within the Indian market.
According to the CNBC TV18 interview, Bhansali maintains that markets don't entitle investors to returns, they must be earned. She notes that long-term returns are not typically double-digit and describes the current period as a global reset moment requiring portfolio repositioning. The fund manager suggests that dividends will play a bigger role than capital appreciation going forward, indicating a shift in investment philosophy from growth-focused strategies to income-generating approaches. She recommends that Indian investors should diversify internationally rather than focusing solely on domestic markets.
As reported by CNBC TV18, Bhansali expresses bullish views on hard assets, not specifically gold, citing inflation support for commodities, agricultural and industrial sectors. She prefers Latin American equities over obvious plays like oil stocks, stating that many Latin American stocks remain undervalued and benefit from being resource exporters. She identifies UK, Europe, and Singapore as attractive markets while noting that crowded markets like US tech, Japan, and India have unattractive valuations. She specifically highlights sectoral opportunities in India like jewellery while maintaining that the broader market remains unattractive.
