Nomura India Amit Thawani on Market Outlook

The video discusses the high market volatility driven by interest rates and geopolitical tensions, with a focus on IPOs and secondary market activities. It highlights the preference for domestic over overseas listings, driven by established tech models. M&A activity is robust, led by private equity and domestic consolidation, with significant transactions like the HDFC merger. ESG is a growing area, with capital raising in renewables and electric vehicles. The video concludes with potential growth in tech, healthcare, and industrial sectors, despite market volatility.

What were the primary drivers of market volatility at the start of the year?

• Currency fluctuations and trade wars

• Inflation and unemployment rates

• Interest rates and geopolitical tensions

• Technological advancements and market saturation

What is the expected trend for IPOs in the second half of the year?

• No significant change in IPO activity

• Increased overseas IPOs

• A constructive environment for IPOs

• A decline in IPO activity

Why are domestic markets preferred over overseas listings?

• Higher costs associated with overseas listings

• Established business models are more successful domestically

• Lack of interest in international markets

• Better regulatory environment domestically

What has been a significant driver of M&A activity in recent years?

• Government policies

• Private equity funds

• Public sector investments

• Foreign direct investment

What was the impact of the HDFC and HDFC Bank merger?

• It resulted in regulatory challenges

• It had no significant impact on the market

• It set a benchmark for future consolidations

• It led to a decrease in market competition

What is driving the ESG space in India?

• Private fundraising and consolidation

• Government regulations

• International collaborations

• Technological innovations

Which sectors are expected to see growth in the coming months?

• Agriculture and mining

• Tech, consumer, and financial services

• Retail and hospitality

• Real estate and construction