Large-cap valuations have turned attractive, says PGIM India MF CIO

PGIM India Mutual Fund CIO Vinay Paharia stated that large-cap valuations have turned attractive relative to other emerging markets, reversing from a premium two years ago, as foreign investors pull money out amid severe pessimism and West Asia crisis-related disruptions. He noted that India is positioned to grow at a nominal 10-11% over the medium to long term, making structural growth companies capable of compounding at over 12% per annum identifiable. PGIM has added 10-15% exposure to high-quality cyclical companies alongside its structural growth holdings, while emphasizing that domestic investors have become structurally more important relative to foreign investors.