Keenly watching the Quality vs value debate
Presently, the collective wisdom in Indian stock market appears divided at least on two issues over the consideration of appropriate equity investment strategy. The first point of division is over the sustainability of the stock markets at the present levels. A smaller but influential segment, which primarily includes economists, development bankers and strategists, believes that the macro conditions in Indian economy may not improve materially from the current level at least till FY21. The political and fiscal constraints shall limit the government's ability to stimulate the economy through fiscal incentives and material increase in infrastructure investments. The private investment may not see any significant improvement in the absence of large scale new employment opportunities; occurrence of which looks improbable unless radical reforms in labor and land laws are executed earnestly and immediately. Regardless of the initiation of the resolution process for many...