Equity market in bullish zone even as valuations rise: Bajaj Finserv AMC

Going by the behavioural indicators, the equity market remains in the bullish zone even as valuations have climbed up, Nimesh Chandan, the chief investment officer (CIO) at Bajaj Finserv AMC, said on Tuesday.

"There is a chance that valuations may remain above the fair value for some time because the sentiment is very positive," he said.

The AMC's behavioural indicator, which tracks investors' behaviour in four markets — currency, commodity, bond and equity, has been showing a bullish signal since April 2023.

In its equity outlook for 2024, the AMC said India remains better placed on the investment landscape compared to most other economies, given the higher GDP growth rate and a pick up in private consumption and private capex.

The risks for equities could emanate from a slowdown in the global economy, adverse election outcomes and delayed revival in the rural economy due to erratic weather, it said.