'Temper down expectations in the near term'

Corporate India is exiting from COVID-19 pandemic stronger than it entered into it. However, the key question is how much of this is already priced in.

- Harish Krishnan

Market outlook

Over the last 18 months, Indian markets have had a dream run, outperforming most global markets significantly. We plotted the number of doublers in any five-year period over the last 20+ years, and thanks to this dream run, almost 70 per cent of NSE 500 stocks have doubled in the last five years - one of the highest readings in the last 20+ years. Similarly, when we look at BSE SME IPO index, which is up five times in last six months or the fact that many companies which have poor-quality balance sheets have significantly outperformed in the last six months, all point to the fact that one is better advised to temper down expectations from the market in the near term. Of course, the fact that fundamentals are strong implies that we will advise investors to use such opportunities to allocate to equities in the event of intermittent volatility.