We expect markets to now track underlying earnings growth: Gautam Duggad

We believe the valuations at 20.5x one-year forward price-to-earnings for the Nifty50 Index are not exorbitantly expensive, but they aren't cheap either

The benchmark Nifty and Sensex have made fresh record highs. Valuations right now are neither expensive nor cheap but in line with long-term averages, says Gautam Duggad, head of research, institutional equities, Motilal Oswal Financial Services, in conversation with Sundar Sethuraman.

Edited excerpts:

Have you lowered the earnings estimates for 2022-23 (FY23) and 2023-24 (FY24)? Will there be further cuts?
 

We haven’t lowered our earnings estimates. We have raised our FY23 estimates Nifty earnings per share (EPS) by 2.5 per cent to Rs 837, from the earlier Rs 817, due to notable earnings upgrades in State Bank of India,