Umang Papneja, Senior Managing Partner, IIFL Investment Managers
Certain sectors could see an earnings turnaround, leading to higher earnings growth than the last 2-3 years. Large-cap valuations are still rich, hence EPS growth may not translate into equity price returns. This will restrict upside on the index. The US Fed has signalled a potential end to rate hikes; RBI too may signal rate cuts in CY 2019. 10-year G-sec yield could reach 7% levels but AAA corporate bond yields may get compressed.
GDP growth (FY19): 7.00%
CPI inflation (2019): 4.50%
10-year government security yield: 7.00%
Gold price (₹ per 10 gm): 33,000