Indian markets looking better in 2023: Franklin Templeton's Radhakrishnan

India stocks are expected to turn in a better performance in 2023 after undergoing time and value correction over the past year, believes Anand Radhakrishnan, Franklin Templeton’s chief investment officer, equity India.
 

In an interview to Bloomberg television, he also said that valuations have become more moderate, allowing for more reasonable return possibilities for 2023. 
 

“So in some sense, I would look at 2023 to be a better year than 2022”.
 

According to him, macroeconomic headwinds are much more muted in India than the rest of the world while earnings growth is expected to improve as commodity prices ease. 
 

This, he said, augurs well for the future returns from the market.
 

He also added that the debt market scenario had started to look better.
 

“Debt investments in India have started looking attractive compared to the same time last year, but Indians are still under invested in domestic equities despite a sharp improvement in local flows to stocks in recent years,” the chief investment officer  pointed out.

Some of these flows, he said, were more behavioral and structural in nature as most Indian investors use systematic investment plans for exposure to equities.  
 

“If some investors want to make a lump sum allocation, probably today, debt has a little more attractiveness than equity compared to a year back or so,” the CIO pointed out.