Top Picks for 2016 By Karvy

Equities outperformed other asset classes marginally in 2015. The marginal equity outperformance, with the S&P 500 remained flat, is significant in the backdrop of highly volatile markets in which Gold lost around 10% and Crude oil prices crashing over 45% for 2015. Indian equities also generated marginal negative returns with the Sensex and Nifty down by around 4% during the year 2015. But the longer term prospects are looking brighter for Indian Equities and on course to double the market-cap to $3 trillion by 2020, amid renewed confidence over the faster economic growth, lower commodity prices and improved domestic macro economic factors.

Indian equities continue to be an attractive investment destination in the long term:

Improvement in domestic macros like higher GDP growth, lower than expected inflation, downward revision in interest rates, lower deficit due to lower crude oil import bill and improved fiscal discipline make India an attractive investment destination. Indian markets could have fully realized the benefits of macro-improvement had there been a little more political consensus on key policy issues like the passing of the GST bill.

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