Chandresh Kumar Nigam, MD & CEO of Axis AMC, in an interview to CNBC-TV18, said Indian market is providing an opportunity for long-term investors.
“While I agree that it certainly looks like that the market has taken the second wave in its stride, there was some volatility a month back. However, it was muted, maybe a 5-6 percent cut and the markets after that have been fairly resilient."
"So is it giving us great opportunity because there is a sharp fall? No. But is it a fair level at which you can expect to make reasonably good returns over the next 3-4 years? Absolutely,” he said.
He also said that there have been a lot of companies which despite the poor economic conditions have performed well. He expects that there will be a continuation of good earnings growth in the market for the next 4-5 years.
“The great performance which has come from select set of Indian companies which despite the last 4-5 years economic conditions not being great have continued to power very strong earnings growth."
"I think next 4-5 years will see continuation for many of them and many new companies will also get added which will add to this bandwagon where corporate earnings can grow certainly double digits, but more like 15-20 percent, and that is the real reason to be in equity markets; 3-5 years of solid corporate growth compared to the 3-4 percent you get in fixed income,” he said.
According to Nigam, there are great opportunities despite the Nifty trading at around 15,000 levels.
“I don’t think you should start to look at the short-term price movements to affect intended asset allocation. If your asset allocation means on a monthly basis or a quarterly basis you should be adding some money to equities, I think you certainly should. I think there are still great opportunities even when the index is at 15,000 levels,” he said.
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