Expert View: DSP MF Head Remains Bullish on Indian Stock Market for Long Term

Expert View: Bullish on Indian Stock Market for Long Term Despite Uncertainty, Says DSP MF Head of Equities

Amid ongoing global volatility and economic uncertainty, DSP Mutual Fund’s Head of Equities remains strongly optimistic about the long-term prospects of the Indian stock market. According to the expert, India’s structural growth story and resilient domestic economy provide a solid foundation for continued equity market expansion.

Here’s a detailed look at the factors shaping this bullish long-term view.

1. India’s Structural Growth Drivers Remain Intact

Despite global headwinds, India continues to stand out due to:

• A growing domestic consumption base.

• Ongoing infrastructure development.

• A shift towards formalization and digitalization of the economy.

These factors support sustainable earnings growth and make Indian equities attractive for long-term investors.

2. Corporate Earnings on a Steady Growth Path

India Inc. has shown resilience:

• Post-pandemic recovery has translated into better profit margins and operational efficiency.

• Sectors like banking, capital goods, and manufacturing are expected to lead the next growth phase.

DSP MF’s equity head emphasized that earnings upgrades and fiscal stability will continue to support market valuations.

3. Domestic Flows Offset Global Shocks

Even as foreign institutional investor (FII) flows remain volatile, strong domestic investor participation through:

• Mutual fund SIPs,

• Retail investors entering the equity markets,has helped cushion volatility and maintain a steady uptrend in stock indices.

  
  

4. Reform-Led Economic Momentum

Government initiatives such as:

• PLI schemes (Production-Linked Incentives),

• Focus on Make in India and Atmanirbhar Bharat,are driving a revival in private sector capex and supporting industrial growth.

These reforms are expected to improve the competitiveness of Indian businesses over the long term.

5. Valuation Discipline and Sectoral Rotation

According to the DSP MF head:

“While valuations in some pockets may appear stretched, there are still many opportunities available in sectors like financials, industrials, and defence.”

The fund house continues to follow a bottom-up stock selection strategy, focusing on companies with sustainable business models, healthy balance sheets, and growth visibility.

Conclusion

While short-term market volatility due to interest rate decisions, geopolitical risks, and global economic shifts may persist, the long-term outlook for Indian equities remains robust. DSP Mutual Fund’s confidence reflects a broader belief that India is entering a multi-year growth cycle supported by reforms, demographics, and strong domestic demand.

For investors with a long-term horizon, remaining invested in quality stocks and sectors aligned with India’s growth could prove highly rewarding.