Shah said that lower interest rates coupled with higher capacity utilisation of Indian companies would drive growth in India
ICICI Prudential Mutual Fund MD and CEO Nimesh Shah (Photo: businesstoday.in)
Hyderabad: If the inflation figures, current account deficit (CAD) and macro-economic scenario are taken into account, the investors are likely to get moderate returns from equities over the next three to five years.
ICICI Prudential Mutual Fund MD and CEO Nimesh Shah said, “Investors should invest with a three to five year horizon, since the recovery is slowly taking root, it is better to expect moderate returns from equities.” He said that the outlook for the private banks, metals and utilities look reasonably attractive. Also, recovery in real estate sector would give an added impetus to the market.
Mr Shah said that lower interest rates coupled with higher capacity utilisation of Indian companies would drive growth in India. The fund company also hailed the EPFO move to invest in stock markets like several pension funds from other countries like Canada, Japan which have already been investing in Indian stocks.
“Though late, but it was a good decision to put to use the large corpus of funds lying,” Mr Shah said. He also expected the RBI to cut interest rates by 100 to 150 basis points in two years.
( Source : deccan chronicle )
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