Broader markets will continue to give high returns over next 2-3 years: Siddharth Khemka

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Domestic equities have been trading at their all-time high level. A massive influx of liquidity and steep cut in lending rates cheered the market which was reflected in the sharp jump in key equity indices. Nifty has jumped 111% from its March 2020 lows while Sensex has clocked a gain of 107% to reach the 56,000 mark. Siddharth Khemka of Motilal Oswal Financial Services spoke to Money9 on what to expect on markets going ahead.

“The result season has been very encouraging. Despite the lockdown, Nifty earnings have seen roughly 74% net profit growth. The management commentary is positive. They are bullish about growth going forward”, he said

He also said that there are a lot of investors which have entered in the last one year. “However, we know historically, that markets cannot keep going in one direction, there will be corrections on the way. Valuations seem ahead of fundamentals however, on a low base we can see higher growth going forward thus may support the high valuations,” Khemka said.

Speaking about the broader markets, he said that they have outperformed after 2-3 years, so the market at present is seeing healthy corrections. Khemka added that mid and small-cap stocks would still make money in the next 2-3 years.

Watch full conversation to know more