High starting valuations dampen equity outlook in 2024: Neelesh Surana

Neelesh Surana expresses concerns over the quality of rally in certain smallcap pockets

Banking, consumer discretionary, and healthcare are attractive from a future growth potential and valuation perspective, says NEELESH SURANA, chief investment officer at Mirae Asset Investment Managers (India). In an email interaction with Abhishek Kumar, Surana expresses concerns over the quality of rally in certain smallcap pockets. Edited excerpts:

How are markets positioned at this juncture? Do you think they have gone quite far with optimism around rate cuts? Do you expect any repricing?
 

We maintain a constructive stance, considering a renewed capital expenditure (capex) cycle, a well-capitalised banking system, robust credit growth, an upturn in the housing sector, strong domestic