2020 to be a year of consolidation & transition for D-Street: Aditya Birla AMC

Mumbai: Aditya Birla Sun Life AMC sees 2020 to be a year of consolidation and transition for the Indian equity market.

"Overall, CY20 could likely be the year of consolidation as economy and earnings play catch up with the markets and, transition as the broader market starts participating," Mahesh Patil, CIO - equity told reported on Tuesday.

Patil sees risk-reward as fairly balanced in CY20. The returns over a 1-year timeframe could be in high single digit. He expects India's GDP to grow at 6-6.25 per cent in FY21 which would be higher than other major countries.


The fund house believes corporate earnings growth is likely to pickup in line with the improvement in the economy. It projects FY21 Nifty earnings growth at around 23 per cent.

The asset management company also expects sectors such as auto, telecom, corporate banks and pharma, which had seen a cyclical downturn, to recover this year.

It, however, warned that recent US-Iran conflict can pose a near-term risk to market given the Indian economy's dependence on oil imports.

More to come...