Markets may remain cautious in near term, but long-term outlook positive: Anand Rathi’s Pradeep Gupta

Pradeep Gupta, Chairman & MD of Anand Rathi Share and Stock Brokers Limited, believes that while the short-term outlook for Indian equity markets may remain cautious due to geopolitical tensions, the long-term outlook for the economy and capital markets remains positive. Gupta cites strong domestic economic fundamentals, including a real GDP growth of 7.8% in the first quarter, and a rise in private capital investment.

He expects sectors such as infrastructure, engineering, financial services, electronic manufacturing, and specialized medical industries to see growth. Gupta advises a cautious approach in the near term but remains positive on the long-term prospects for Indian equities. He highlights the government's active interest through substantial public capital expenditure and growing corporate sector investments as positive factors.

Gupta sees particular potential in the infrastructure, precision engineering, financial markets, and electronic manufacturing sectors. He anticipates that foreign institutional investor (FII) flows will eventually recover as the Indian macro story becomes more appealing, emphasizing the importance of the Reserve Bank of India's policy stance, clarity on inflation, and the monsoon's impact on demand and consumption.