Latest news with #MayurPatel
Mint
3 days ago
- Business
- Mint
Expert view on Indian stock market: Market valuations stretched, but outlook remains bright, says Mayur Patel of 360 ONE
Expert view on Indian stock market: Mayur Patel, President and Fund Manager- Listed Equity, 360 ONE Asset, is positive about the Indian stock market for the long term, even as he points out that the current valuation is stretched. In an interview with Mint, Patel underscored that while near-term corrections can't be ruled out, India's fundamental story remains strong and is an 'add-on dips' story. Here are edited excerpts of the interview: While Q1 earnings remain weak, the outlook is actually encouraging. Consumer demand is poised to rebound after a prolonged slowdown. Tax reliefs, interest rate cuts, and enhanced liquidity amid cooling inflation should help revive consumption. Credit growth, currently subdued, is also expected to pick up with a lag. So, earnings trends are not the primary concern. The bigger overhang is uncertainty around US tariffs. The announcements so far are aggressive — 20–35 per cent tariffs on a range of countries are clearly negative for global trade. This raises risks of higher inflation and an economic slowdown in the US. It could also disrupt global trade, delay corporate investment decisions, and increase equity risk premiums. For India, the direct long-term impact of US tariffs is limited — merchandise exports to the US are just 2 per cent of Indian GDP, with services adding another few percentage points. However, in the short term, higher tariffs on Indian exports (if finalised) could dampen market sentiment. Interestingly, India might actually benefit over the longer term from the 'China+1' strategy, especially if Indian tariffs remain lower than those on other competing economies. We don't try to predict short-term market movements. That said, we are a bit cautious in the near term. Valuations are above average, and there's a lot of global uncertainty in the mix, whether it's US tariffs or geopolitical tensions. Trying to call near-term market movements is rarely productive. Markets are complex, and short-term movements often have more noise than signal. That said, there's no denying valuations are stretched. The Sensex P/B, which had corrected from 4.25 times in September'24 to 3.76 times in Q1, is back at 4.5 times — well above the long-term mean of 3.2 times. So yes, some volatility or even a correction is certainly possible, especially with risks like US trade policy or oil price shocks from the Middle East. But if we step back, India's domestic macro picture is solid. Growth is improving, inflation is coming down, the RBI has front-loaded rate cuts and even announced CRR cuts — all pro-growth signals. Discretionary consumption is also set to revive with the ₹ 1 trillion tax relief and upcoming Pay Commission hikes. So while near-term corrections can't be ruled out, India's fundamental story is strong. Think of it like a high-quality, high-growth stock that looks pricey today but offers long-term value — it's really an 'add-on-dips' story. We're clearly in a market where bottom-up stock selection matters far more than top-down positioning. Market internals would matter more than market timing. Key portfolio construction thoughts: (i) Growth leadership is shifting from government-led capex to consumer discretionary spending. (ii) After a strong run, value as a factor may underperform, with quality and growth factors likely to come back in favour, helped by urban consumption stimulus and a supportive rate/liquidity backdrop. (iii) Export-driven sectors are vulnerable to earnings downgrades amid global uncertainties. (iv) Prefer domestic demand-driven stories over those heavily reliant on global macros. Over the last five years, government capex grew from ₹ 3.4 trillion to ₹ 11 trillion — an impressive 27 per cent CAGR, which really helped capex-linked sectors and value stocks. Looking ahead, we're seeing the government's focus shift toward reviving consumption and encouraging private capex while controlling the fiscal deficit, with government capex growth likely to moderate. This sets the stage for a potential comeback in the growth and quality segments of the market. Coming to specific areas of preference with a slightly longer-term view, we do see robust growth prospects in the following sectors: (i) Manufacturing: Renewables, electronics, semiconductors, etc. (ii) Consumer discretionary: Benefiting from fiscal incentives and potential pay commission-related hikes. (iii) Power sector: Opportunities, especially in transmission and distribution. (iv) Auto EV plays: Positioned for sustained growth driven by rising penetration of EVs. (v) Quick commerce: Emerging space with significant growth potential. (vi) Pharma CDMO: Leveraging India's global competitive advantage. (vii) Telecom: Sector attractiveness enhanced by industry consolidation. (viii) High-quality NBFCs: Consistent growth leaders. (ix) Private banks: Offering attractive valuations and stable growth. At current valuation levels, it's important to keep short-term return expectations modest, and instead focus on systematic, long-term investing. Historically, as investors stretch their horizon from one year to five years, volatility in returns — as measured by standard deviation—reduces significantly, and the risk-reward ratio improves. If we look past short-term volatility, we feel good about H2. Consumption should recover, credit growth is likely to pick up, and lower rates will support overall growth. Also, with market ROEs of around 15%, each passing year naturally compresses P/B multiples, improving the long-term risk-reward balance. In short, the cyclical rebound in discretionary consumption and the steady rise of manufacturing are India's two big growth drivers in the coming years. So, have some appetite for short-term volatility and invest systematically in this structural growth story. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
South China Morning Post
31-03-2025
- Business
- South China Morning Post
Lao Airlines cruising to first C909 – a milestone for the China-made aircraft
Southeast Asia's only landlocked country, sharing a border with China and four other nations, expects to see its flagship airline add a China-made C909 aircraft to its fleet, joining a growing group of regional clients with access to Chinese passenger aircraft. Advertisement Lao Airlines, which operates routes around Asia, is completing a series of tasks with the Commercial Aircraft Corporation of China (Comac) in preparation for the lease, Comac said via its news channel on Sunday. Lao Airlines' plan also serves to elevate the Chinese manufacturer as it seeks to spread its wings abroad – starting with Southeast Asian countries, as most others have not certified Comac's planes – according to analysts. 'Some of these are to countries that have ties with China. And more importantly, Comac, over time, will demonstrate its capabilities as a major aircraft manufacturer,' said Mayur Patel, Asia head with British aviation intelligence firm OAG. The C909, formerly the ARJ21 , is built for 78 to 97 seats and relatively short flights of 2,225 to 3,700km (1,382-2,299 miles). Comac began developing the planes in 2002, and Chengdu Airlines began operating them in 2015. Advertisement The plane that is due to operate in Laos will have 90 seats, Comac said. It posted photos of the jet parked in Shanghai with the airlines' branding on the cabin exterior.
Yahoo
18-02-2025
- Business
- Yahoo
Asia Pacific Aviation Market Soars: Domestic Rebound and Competitive Pricing Fuel Growth, OAG's Latest Report Reveals
Domestic Recovery Surges While International Capacity Nears Pre-Pandemic Levels Key takeaways: Total capacity surpasses pre-pandemic levels up 0.5% on 2019. Domestic market outperforms 2019 up 4.7% on 2019; China and India lead the way. Competitive pricing drives up to 71% reduction in average ticket prices. SINGAPORE, Feb. 17, 2025 (GLOBE NEWSWIRE) -- Latest analysis from leading travel data provider, OAG, confirms that the Asia-Pacific (ASPAC) region is on track to solidify its position as the world's most competitive aviation market in 2025, having surpassed 2019's total capacity by 0.5% in 2024. Both domestic and international sectors show remarkable growth and resilience. OAG's latest report 'Is Asia Pacific the World's Most Competitive Aviation Market?' reveals how domestic markets across the region have rebounded strongly, now operating at 4.7% above 2019 levels. This growth underscores the critical role of domestic travel in driving the region's aviation recovery. Chinese domestic capacity is now 14% above 2019, and India is 13% ahead of pre-pandemic levels. These two countries, along with Japan and Indonesia, boast more than 100 million seats in their domestic Japan remains 4% behind 2019 domestic capacity levels as a combination of socio-economic factors hold back growth. Contributing to Indonesia's slower return (17% behind) are ongoing supply chain issues, with 27% of the country's aircraft currently stored or out for maintenance. On the international front, the ASPAC region has achieved 594.8 million seats, making it the second-largest international aviation market globally. While this figure is below 2019 levels, ASPAC now accounts for one in every four international seats worldwide. Leading the charge in international seat capacity are Singapore Airlines, Cathay Pacific, and China Eastern. Singapore Airlines is also among the three Asia Pacific airlines within the top 10 for international capacity that have surpassed their 2019 levels, with 14.1% more than in 2024. The other two are Scoot (+13.8%) and EVA Airways (+4.5%). The report also explains how airfares in the region have been driven down by rapid capacity expansion and increased competition. Average ticket prices on 17 of the 20 largest growth markets have declined, many by more than 20%, with Bangkok to Shanghai Pudong (BKK-PVG) seeing a 71% reduction in fares, year on year. OAG's Head of Asia Pacific, Mayur Patel commented: 'As the Asia Pacific region continues to expand, the synergy of robust domestic recovery, dynamic international growth, and competitive strategic pricing makes it the world's most vibrant and competitive aviation market.' Read OAG's report, 'Is Asia Pacific the Most Competitive Aviation Market?' on their website. About OAGOAG is a leading data platform for the global travel industry offering an industry-first single source for supply, demand, and pricing data. Media Enquiries: pressoffice@ For more information on OAG visit
