India’s growth story Intact: JPMorgan’s Sanjay Mookim sees Valuation Edge, Consumption -Boost

Despite the return of the Gedempte Studentmarkt in the past year, the long-term confidence of investors in India remains strong, said Sanjay Mookim, head of research, JPMorgan, at the largest India conference ever in the India. More than 1,300 delegates and a record number of companies have participated, which reflects the growing interest in India’s growth.

Mookim acknowledged that Indian shares have been largely flat in the past year due to the delay of the growth of GDP and a weak consumer sentiment. However, he emphasized the improvement of the circumstances and said:

The expectations of the win have already been reduced, leaving room for upside down surprises.

Indian shares are now acting with a 10% discount on the S&P 500, making valuations more attractive compared to global peers.

Domestic catalysts such as GST 2.0, lower interest rates and recent tax cuts can cause a recovery in consumption and business income.

“This festival season is very important for the perspective of the profit growth of India. Lower EMIs and GST-eating cuts can stimulate the demand for entry wagons and two-wheelers,” said Mookim.

Consumption, financial data in Focus

According to Mookim, discretionary consumption sectors such as cars will probably benefit the most from GST and tax cuts. Lower loan costs and lower EMIs have improved affordability for households in the margin, so that many may be tilted to their first car purchase.

With regard to the ratings, he noted that although Indian shares look expensive on an absolute basis, relative ratings have improved as the world markets are collected. In particular, Indian financial data is now acting with a smaller premium compared to global banks, despite a strong visibility of profit.

Fiis still careful

Foreign investors have been net sellers in the past quarters, with domestic investors supporting the market. Mookim said that FIIs need a “spark”, such as progress in the field of a trade agreement in the US India or the relief of global overhangs before the streams return strongly.

“The market must find its feet before streams return, but streams also help markets to find their feet. It is a bit of a circular problem,” he explained.

India’s structural growth opinion

Looking ahead, Mookim emphasized that India remains well positioned compared to export -dependent economies. With strong domestic growth engines, it is expected that the structural growth of India will perform better in the coming three years than the surviving of colleagues such as China, Taiwan and Vietnam, who are highly dependent on world trade.

“India has endogenous growth engines. Even if exports are under pressure, domestic consumption and reform will keep growing resilient,” said Mookim.