Quality stocks fairly valued, avoid low-growth bubbles: PGIM India MF CIO

Earnings growth may face downward revisions, leading to market volatility and drawdowns. However, the medium- to long-term outlook for the equity markets remains healthy

The volatility in the equity market may persist for an extended period as early trends in the third-quarter (Q3) results and management commentary are not promising, says VINAY PAHARIA, chief investment officer (CIO) at PGIM India Mutual Fund (MF). In an email interaction with Abhishek Kumar, Paharia says that the medium-to-long-term outlook remains positive. Edited excerpts:

 

How long do you see the ongoing consolidation in the market continuing? 

One reason is that consumption, which sharply increased after the pandemic, now appears to be slowing down. The downturn in the first half of 2024-25 (FY25) was partly due to adverse weather