It's likely value-oriented stocks will outperform, says Nippon India MF CIO

On the domestic side, we have latent demand in many industries due to the slowdown of the last few years, multi-year low-interest rates, exports, and capital flow being assisted by the global macro sc

Stocks may look expensive after a sharp rebound from March lows, but the markets are at a fair level now, says Manish Gunwani, CIO-equity investments, Nippon India Mutual Fund. In an interview to Samie Modak, he says the value theme may pay off next year. Edited excerpts:

The benchmark indices are up more than 70 per cent from March lows. Do you think the markets have run ahead of fundamentals?

While there seems an optical disconnect between the markets and the economy, there are a few points to be kept in mind. First, both global and domestic economic recoveries have been far