‘With interest rate cuts beginning, India should see capital being reallocated from bonds to equities’
Pawan Bharaddia, Co-founder, Equitree Capital, on what US rate cuts mean for Indian markets, long-term outlook, the firm's investment strategies, and more.
- Sep 19, 2024,
- Updated Sep 19, 2024 1:28 PM IST
The start of the rate cut cycle in the US bodes well for Indian stock markets. On September 19, the benchmark indices, BSE Sensex and NSE Nifty, reached new record highs of 83,773.61 and 25,611.95, respectively, following the US Federal Reserve’s decision to lower interest rates by 50 basis points (bps). But what does this rate cut mean for India’s equity markets? Which sectors should investors focus on to benefit from future opportunities? In a conversation with Business Today, Pawan Bharaddia, Co-founder of Equitree Capital, shared his views. Edited excerpts:
There has been an increased acceptance of the need for having a professional fund manager who can customise a portfolio depending on the investors risk profile and return expectations. On that count, AUM in the PMS industry has seen healthy growth in the last 5 years. We believe that professional fund management as an industry is itself at an infection point as financial assets find more acceptance amongst investors and allocations to equity as an asset class increase. We strongly believe that this would continue to do well.
The start of the rate cut cycle in the US bodes well for Indian stock markets. On September 19, the benchmark indices, BSE Sensex and NSE Nifty, reached new record highs of 83,773.61 and 25,611.95, respectively, following the US Federal Reserve’s decision to lower interest rates by 50 basis points (bps). But what does this rate cut mean for India’s equity markets? Which sectors should investors focus on to benefit from future opportunities? In a conversation with Business Today, Pawan Bharaddia, Co-founder of Equitree Capital, shared his views. Edited excerpts:
There has been an increased acceptance of the need for having a professional fund manager who can customise a portfolio depending on the investors risk profile and return expectations. On that count, AUM in the PMS industry has seen healthy growth in the last 5 years. We believe that professional fund management as an industry is itself at an infection point as financial assets find more acceptance amongst investors and allocations to equity as an asset class increase. We strongly believe that this would continue to do well.