Expect moderate returns this year as macro headwinds mount: SBI Pension Fund CIO

SBI Pension Fund CIO Sandeep Pandey has cautioned that equity return expectations for the current financial year should remain moderate due to compounding macro headwinds including a resumption of West Asia conflict, margin pressures, inflation, and currency volatility risks. The Nifty 50 is expected to post high single-digit EPS growth for the June quarter, dragged by oil and gas, with potential downside risks to earnings if geopolitical tensions persist. Valuations have corrected below their 10-year average, and the 8th Pay Commission along with trade deals may support domestic consumption and exports.