Mkt re-rating unlikely amid global uncertainty: Venugopal Manghat, HSBC MF
Business Standard 1 hr ago·22 Oct 2026, 3:21 am
Venugopal Manghat, CIO at HSBC Mutual Fund, has cautioned that the Indian stock market may not see a fresh round of re-rating in the near future. He points out that the sharp rally over the past year has already pushed valuations in several segments, particularly the SMID (Small and Mid Cap) space, to levels that are pricing in several years of strong earnings growth. This means that the market is currently expensive relative to its historical averages.
This outlook is particularly relevant for investors who may be chasing stocks that have already seen significant gains. The high valuations imply that the market is expecting continued strong performance, which may be difficult to sustain given the current global economic environment. Consequently, the scope for further upside from current levels is limited, and the market may face headwinds from global uncertainties.
Investors should therefore focus on stock selection and quality rather than expecting broad-based market rallies. It is crucial to look for companies with solid fundamentals and sustainable business models that can withstand global volatility. Keeping a close watch on global cues and domestic corporate earnings will be key for navigating this period of uncertainty.
Key takeaways
- Category: Corporate Action.
- Flagged as a high-impact, market-moving story.
Why it matters
This is a high-impact development and could move the stock. Use the price and stock snapshot to gauge how the market is responding.
