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Daily Voice: Don't foresee any substantial risk of significant capital moving from India to China, says Ladderup's Raghvendra Nath

Money Control · 1m

- Raghvendra Nath is the Managing Director at Ladderup Wealth Management. - Indian markets have witnessed a powerful rally driven by domestic flows, resilient economic growth, and strong earnings growth from companies. - Investors have become more selective, focusing on high-quality and high-growth stocks, while stocks that were primarily driven by liquidity and speculation may see a gradual decline in valuations. - There may be some moderation in earnings expectations during the Q2 FY25 earnings season, but no major downgrades are anticipated due to favorable macroeconomic factors. - The Reserve Bank of India (RBI) is expected to maintain its policy stance unchanged in the upcoming October meeting, considering the geopolitical tensions in the Middle East. - The real estate sector in India has shown signs of improvement, with increased demand and record-breaking sales. However, caution is advised as stock prices already reflect much of the optimism. - The recent rally in the Chinese market is seen as a relief rally rather than a structural pivot, and India's relative attractiveness remains high. No substantial rebalancing or risk of significant capital moving from India to China is anticipated.