Rakesh Vyas, CIO and Portfolio Manager at Quest Investment Managers, remains constructive on equities. A return to previous highs by the end of the fiscal year is certainly possible, particularly if earnings remain steady and some of the current macroeconomic uncertainties begin to ease, he said in an interview with Moneycontrol.
According to Vyas, lower crude oil prices, greater visibility on global interest rates, an improvement in foreign institutional flows and a continued recovery in domestic consumption could all act as catalysts for the market.
He remains constructive on consumer discretionary, with the sector currently representing his largest allocation. Vyas believes the earnings outlook across several categories is improving, supported by premiumisation, formalisation and sustained growth in discretionary spending.
Meanwhile, Vyas views FCNR inflows as a positive enabler for the credit cycle, rather than a standalone reason to turn bullish on the entire banking sector.
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