scorecardresearchIndia remains an attractive investment destination despite rich valuation, says Mukul Kochhar of Investec Capital

India remains an attractive investment destination despite rich valuation, says Mukul Kochhar of Investec Capital

Updated: 19 Dec 2022, 09:27 AM IST
TL;DR.
Kochhar pointed out that both the US and India are the most expensive markets in the world. He said that the Indian markets are at a 15-20 percent premium even to the US market, indicating how expensive our market is in multiple terms.
Kochhar observed that the focus of foreign institutional investors (FIIs) towards India has increased.

Kochhar observed that the focus of foreign institutional investors (FIIs) towards India has increased.

India remains an attractive investment destination and there are enough opportunities for investment in this country despite its rich valuation, said Mukul Kochhar, Head, Institutional Equities, Investec Capital Services, in an interview with ET Now.

"India is a very interesting place to be in, even though headline indices are expensive. These are driven by a few stocks as we work with investors. We are finding enough opportunities to be invested in the country for the long term and make reasonable returns," Kochhar told ET Now.

Kochhar pointed out that both the US and India are the most expensive markets in the world. He said that the Indian markets are at a 15-20 percent premium even to the US market, indicating how expensive our market is in multiple terms.

"We suspect the Capex cycle will take people by surprise. It is going to be stronger than what people are thinking of as a very low base," said Kochhar.

Kochhar also observed that the focus of foreign institutional investors (FIIs) towards India has increased which has allowed foreign investors to look at a broader spectrum of stocks. This will make price discovery better and help new themes emerge.

"The focus on India has improved and that has allowed the foreign investors to look at a broader array of stocks and therefore we see increased participation in the midcap space, which was not there before," he said.

Kochhar said as Nifty is expensive, stock selection will be key for higher returns.

"In broader markets, higher growth will be available and the manufacturing sector is going to see higher growth due to the very low base," Kochhar told ET.

Disclaimer: This article is based on an ET Now interview. The views and recommendations given in this article are those of the analyst. These do not represent the views of MintGenie.

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First Published: 19 Dec 2022, 09:27 AM IST