Business · India Bureau
Market rerating hinges on earnings growth, says Axis Direct CEO
Investors should adopt a phased investment approach over the next two to three quarters as markets navigate a consolidation phase before sustained recovery, according to Axis Direct's chief executive.
LSN India ·
The Indian equity market will require meaningful earnings upgrades to justify a fresh round of valuation expansion, according to senior market participants. Axis Direct's chief executive flagged the need for stronger corporate performance to support any significant market rerating from current levels.
The executive expects Indian markets to enter a consolidation phase in the near term before embarking on a sustained recovery trajectory. This outlook suggests investors should temper near-term expectations while positioning for longer-term gains.
To navigate this transition, the Axis Direct chief recommended a measured deployment of capital. Rather than making lump-sum investments, investors are advised to gradually deploy funds across the next two to three quarters, aligning their entry points with market movements and emerging opportunities.
The phased investment strategy reflects broader caution in the market as participants await evidence of improving corporate earnings growth. Such a gradual approach allows investors to average their entry costs while maintaining flexibility to respond to changing market conditions during the consolidation phase.