Indian market started off on a strong note but persistent selling by foreign investors as well as rising geopolitical concerns dented sentiment and pushed benchmark indices in red for the year 2022.  

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The S&P BSE Sensex fell 0.7 per cent, while the Nifty50 is down 0.4 per cent so far in the year 2022, data as on 18 February showed.  

However, investors who have a long-term horizon can look at putting fresh money into equity markets now or on dips as the structural trend still remains to be on the upside.  

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Also Read: FPIs pull out Rs 18,856 cr from Indian markets in February so far 

But experts feel that outflows are temporary and flow will reverse as India is still the preferred investment destination amid strong macros and expectations of double-digit earnings growth, suggest experts.  

“The market welcomed the bold CAPEX-oriented budget and reacted positively post the announcement. However, FPI outflow continues to impact near-term performance and exert pressure,” Mitul Shah, Head of Research – Institutional Desk at Reliance Securities, said.  

“Going forward we expect this volatility would settle in the next 1-2 months and FPI inflow would begin in FY23. We expect Indian equities to outperform with double-digit returns. Our year-end 2022 target for Nifty is 20,000 at 22x FY24E earnings,” he said.  

Shah expects the Nifty to enjoy premium valuation for the next 1-2 years on the back of higher earnings CAGR (before reaching a stable earnings pace of growth), as India becomes a preferred destination for global manufacturing, going ahead.  

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers consult with their investment advisers before making any financial decision.)