Mutual Fund Investors Seem To Have Become More Matured

Yogesh Patil CIO (Equity), LIC Mutual Fund Asset Management Ltd.

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With high levels of inflation expected to persist in the near future along with more potential rate hikes, what is your outlook on the Indian equity markets in the short to medium term?

The markets are generally forward-looking and these issues of high inflation and rising interest rates have been hitting the headlines for the last one year. The impact of inflation and rising interest rates has been reflected in corporate profitability for the last two quarters. A large part of the rate hikes, both globally and locally, seem to be behind us and we may be entering into the fag end of the rate hike cycle. We believe that going forward these risks may gradually recede and large companies having strong pricing power may emerge stronger from this crisis.

As far as the performance of the Indian equity markets is concerned, the markets are trying to navigate these headwinds for the last one and a half years.