Large-cap valuations have turned attractive, says PGIM India MF CIO (opens original article in a new tab)

PGIM India's CIO notes that Indian large-cap stocks are becoming attractive due to shifting market sentiment and valuations, while emphasizing the need to distinguish short-term performance from long-term business fundamentals.

• PGIM India CIO warns that short-term gains are shrinking stock investment horizons, contradicting long-term equity investing principles.
• Large-cap Indian stocks have become more attractive due to relative valuations compared to other emerging markets amid foreign investor pessimism.
• PGIM increased exposure to high-quality cyclical companies by 10-15% while maintaining focus on structural growth investments.
• Junk-grade companies have outperformed investment-grade ones in recent years, prompting a shift in evaluation criteria from market cap to credit quality.