Summary
- Gold and silver are showing signs of a bull market.
- US interest payments may become a source of trouble, and news regarding US borrowing and interest rates should be monitored.
- Valuations for India and the US remain high, making them vulnerable to earnings growth.
- India has outperformed China due to superior earnings growth, but China’s valuations have become attractive.
- Foreign institutional flows have not favored India recently, but this may change in the next 24-48 months.
- The Indian economy has been more resilient than the rest of the world due to a better balance of payments and shielding from external shocks.
- India is not completely immune to external shocks, and there are limits to how much it can withstand.
- Market capitalization has grown close to a lifetime high, but profitability has not kept pace.Domestic companies have largely driven the re-rating, and top-line growth is crucial for India’s profitability.
- Cyclicals have been the biggest outperformers in the bull market.
- India’s investments have reached a trillion dollars, making it a significant sector to invest in.
