Valuations stretched and time or price correction likely, says Ajay Tyagi

Tyagi says private banks, consumer services and consumer discretionary look attractive even as the market has turned expensive across most of the segments

Some of the best-managed banks in India are trading at lower valuations vis-a-vis their long-term averages even as their fundamentals remain strong, says Ajay Tyagi, Head of Equities at UTI AMC. In an interview with Abhishek Kumar, Tyagi says private banks, consumer services and consumer discretionary look attractive for investments even when the market has turned expensive across most of the segments. Edited excerpts: 

The market surprised most analysts in 2023 with a sharp rally. Is there scope for the momentum to continue in 2024?

It looks unlikely. In terms of valuations, we are significantly above the long-term averages as far