Until foreign outflows ease meaningfully, the market is likely to remain range-bound despite positive domestic macroeconomic fundamentals, said Abhay Laijawala, Managing Director and Chief Investment Officer, India, at Lighthouse Canton, in an interview with Moneycontrol.
Foreign investors still account for a meaningful 15 percent of the overall market, making the direction of their flows an important factor in determining market trends, he added.
Meanwhile, Laijawala remains cautious on the consumer staples sector, which is currently trading at a 25 percent discount to its long-term valuation.
However, despite the valuation discount, he sees near-term concerns for the sector, particularly in light of the potential monsoon shortfall associated with El Nino.
Do you see strong and clear earnings visibility for the next three to five years in the telecom sector?