Markets poised to deliver on earnings

Favourable demographic profile and the health of banks make the medium- to long-term outlook on markets positive.

- RUPESH PATEL, SENIOR FUND MANAGER (EQUITY), NIPPON INDIA MUTUAL FUND

Rupesh Patel, senior fund manager, equity, Nippon India Mutual Fund, who manages ₹43,000 crore assets, tells Nesil Staney that earnings growth is a key variable for markets to go up. Excerpts:

What is your directional call on the market?

A favourable demographic profile and cyclical factors like health of banks and corporate balance sheets make the medium-to-long-term outlook on market direction positive. In the near term, improving earnings growth is a key variable to watch out for. We believe, given the accommodative fiscal and monetary policies, continued positive view on capex and improving outlook for demand recovery, the markets are well poised to deliver on earnings growth.

This is critical, considering the fact that valuations are certainly not cheap.

Prices of most stocks have soared.