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ETMarkets.com Indian equities are at the cusp of a strong upcycle after nearly a year of consolidation, according to Vikas Khemani, Founder and CEO of Carnelian Asset Management. Khemani expects the Nifty to scale 29,000–30,000 in the current Samvat year, predicting 15–20% market returns, supported by rising liquidity, policy support, and a revival in corporate earnings.“Our faith in the India story remains strong. The phase of consolidation is over, and as growth returns, markets will do very well,” Khemani said in an interview with ET Now.Liquidity, policy support, and earnings to drive the next market legKhemani noted that the liquidity crunch witnessed last year — triggered by RBI’s rupee defense and tighter lending norms — has reversed sharply.With rate cuts, credit growth measures, and consumption-focused policies like GST rationalization and income tax cuts, India’s macro setup has turned supportive.“Both domestic liquidity and foreign inflows are set to improve. As FPIs return, we should see a stronger and broader market rally,” he said, adding that India’s structural fundamentals are firmly in place despite global uncertainties.Live EventsYou Might Also Like:Piper Serica’s Abhay Agarwal turns bullish; expects market rally ahead on FPI return, more rate cutsFinancials, manufacturing, and consumers to lead the chargeAccording to Khemani, banking and financial services, manufacturing, and consumer discretionary sectors will be the key outperformers this year.He expects PSU banks and select NBFCs to continue their strong run, supported by robust credit demand and capital efficiency.“BFSI remains the key channel for India’s savings. From PSU banks to insurance and capital market intermediaries, the sector offers a broad set of opportunities,” he added.Khemani highlighted ICICI Bank, Aditya Birla Capital, and life insurance companies among the key plays in the sector.You Might Also Like:Nifty Capital Markets index tops all sectors with 30% 1-yr rally. BSE, king of good times with 70% gainsCaution over private placements and unlisted stocksWhile bullish on listed equities, Khemani raised a red flag on the current investor rush into unlisted shares.He warned that many retail and family-office investors are chasing private placements at inflated valuations, without understanding the risks.“Investing in unlisted space requires deep expertise — in price discovery, rights protection, and governance. Retail investors often realize risks only after the fact,” he cautioned.‘Fad to fundamentals’: New-age tech stocks back in playKhemani, who had earlier dismissed the 2021 tech IPO frenzy as a “FOMO-driven fad,” now sees a shift in fundamentals.You Might Also Like:No Nifty forecast, but Gurmeet Chadha lists his 5 big predictions for next DiwaliHe believes new-age platforms like Paytm and PB Fintech have moved from “burning to earning,” improving their cash flow visibility and business models.“When valuations corrected and business models matured, we began investing. Paytm at ₹550 was a value buy — not at ₹3,000. The key is identifying risk-reward, not chasing trends,” he said.Global risks persist, but India’s structural story intactOn potential risks, Khemani acknowledged global uncertainty — from tariff disputes to deglobalization and geopolitical conflicts — but maintained that India’s macro repair cycle is complete.“We’ll live in a multipolar, geo-conflicted world, but India’s structural risks are behind us. Short-term volatility may come, but long-term fundamentals remain robust,” he said.Bottom lineKhemani remains firmly bullish on India’s growth trajectory.With structural reforms, credit expansion, and policy tailwinds, he believes the market is entering a phase of sustainable earnings-led growth.“Investors should stay invested and focus on stock selection. It’s not about timing the market, but owning the right businesses through cycles,” he concludeAdd as a Reliable and Trusted News Source Add Now! 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