JioBlackRock CIO Rishi Kohli decodes Nifty’s inflection point after two years of weak returns
JioBlackRock CIO Rishi Kohli observes that largecap valuations have de-rated, and Indian banks have notably underperformed their global counterparts over the past two years. This creates a potential inflection point for the Nifty, with Kohli suggesting a possible shift in market leadership. He anticipates continued market volatility but believes that the banking sector, with its current valuation and fundamental position, could provide crucial support to broader indices going forward.
What this means
This expert view suggests that the banking sector, despite recent underperformance, might be undervalued and poised for a re-rating. Banks should monitor this sentiment as it could attract renewed investor interest, potentially impacting stock performance and capital raising efforts. Improving fundamentals, such as contained NPAs and healthy loan growth, are seen as key drivers.
Most affected: Bank Treasury & Investor Relations
Key takeaway: Assess current valuations and communicate strong fundamentals to investors, preparing for a potential re-rating in the banking sector.
Get stories like this in your inbox every morning
Free daily brief — rates, RBI updates and the banking stories that matter, in 3 minutes.