Page 12 - Forbes - India (January 2020)

L e a d e r B o a rd

How Smart Is Too Smart? CES What Friends, Family And Tech That: 25x Increase In
2020 Paints A Picture Funds Mean For Millennials Funding In A Decade
Folding tablets, robots at beck- The Millennial Pivot report shows Startups raised $14.5 billion in 2019,
and-call and much more P/14 how youths approach life P/14 up from $550 million in 2010 P/15

MArkETS WATCH fiVe Year Pe Data for KeY
niftY inDiCes
Valuations High As 27.5 NIFTY 50

Conflict Threat Ebbs 27.5 27.19 28.41

With US-Iran tensions climbing down, markets depend 25.0 26.15
on fund flows to maintain current levels

shutterstock 20.0 20.56 22.07
22.5

17.5

15.0
12 Jan 8 Jan 9 Jan 9 Jan 9 Jan 9
2016 2017 2018 2019 2020
NIFTY MIDCAP 50
99.37
100

With the easing of Us-iran Company. Funds into SIPs stood
tensions [as of the second at `8,518 crore in December 2019, 80
week of January], Indian an all-time high. Foreign investors
markets dodged a bullet in the New have bought `21,000 crore of Indian
Year. While there are no signs yet that equities since the corporate tax cut 60
the threat of a low-intensity conflict is announced last September. Since then, 50.34
over, tensions had ebbed. The impact the Nifty has moved up 11 percent.
on oil prices, however, was limited. In the run-up to the Budget, a 40 33.7
Global and Indian markets, therefore, broad market wishlist includes the
bounced back swiftly. abolition of dividend distribution tax, 21.5 23.77
Now, as the market waits for its rationalisation of long-term capital 20
next trigger—the Budget, a bottoming gains, as well as a cut in personal Jan 8 Jan 9 Jan 9 Jan 9 Jan 9
2020
2017
2016
2019
2018
out of the economy, and a long- income tax. It is unclear how much source nse
awaited earnings revival—its staying fiscal room the government has for Shah. At 4.5 percent, growth, which
at present valuations depends as these (the corporate tax cut cost the slid to a 26-quarter low in the second
much on global fund flows as it does government `1.4 lakh crore) and quarter of FY20, is likely to bottom
on the Indian investor. “From a there is no evidence that the market is out. Initial signs point to investors
fund flow situation for India’s stock pricing it in. Despite that, valuations pricing in a midcap outperformance.
markets, passive money is increasing remain at multi-year highs with the They are expected to do better than
through global and domestic investors Nifty trading at 28.4 times earnings their larger counterparts in the
while ignoring valuations completely,” and the Midcap Index at 23.7 times. medium term, which is usually a
says Nilesh Shah, managing director, Last, sentiment’s slowly starting leading indicator of a market rally.
Kotak Mahindra Asset Management to turn from bearish to neutral, says ● samar srivastava and salil Panchal

forbes india • jAnuAry 31, 2020