Navigating The Markets

Stock-picking advice from experts on how to weather volatility.

- Deepika Asthana

It is going to be a tricky year for markets with gains being held ransom to sharp currency movements, inflation induced by rising crude oil prices, election led volatility and a more aggressive global interest rate environment.

“Rising bond yields tend to increase the opportunity cost of investing in equities thereby projecting equities to be relatively overvalued as well as impacting corporate margins through higher borrowing costs. While this risk remains and while the current equity valuations hover above long term average, a recovery in corporate earnings growth and the GDP growth momentum for India remain strong,” expects Anand Radhakrishnan, chief investments officer (equities), Franklin Templeton Asset Management.