Market has already priced in plenty of negativity; outlook looks promising: Prashant Khemka

Fund manager Prashant Khemka believes Indian markets have already priced in substantial negativity, with the correction from the September 2024 peak effectively amounting to a 25 percent plus decline once the cost of equity and time value of money are included. He stated there is no bubble in India, noting that markets have moved sideways for about 21 months and should eventually trend upwards. Khemka highlighted that foreign investors are at their most pessimistic on India in 20 years, with India being among the most underweight emerging markets, while domestic sentiment is weaker than last year but not at peak pessimism.