India is no longer a crazily expensive market, says Jefferies MD Nandurkar

"Indian equities should catch up with global peers with a good probability of outperformance in the second half of this year"

Monetary policy tightening by global central banks, especially the US Federal Reserve (Fed), has dented the performance of global equity markets. Mahesh Nandurkar, managing director at Jefferies, in conversation with Puneet Wadhwa, says that the markets will likely see the impact of higher rates through the next six months and possibly by the fourth quarter (Q4) of calendar year (CY) 2023. They will slowly start to factor in the potential rate cuts only in CY24, he observes. Edited excerpts:

How do you see the global equity landscape pan out in CY23? What probability do you assign to the Fed slashing