The long-term outlook for the Indian equities remains positive due to strong fundamentals, though markets may face some volatility in the short term, say experts.
"We may see some volatility due to the ongoing global market turmoil. However, given the improved fundamentals of the country, India should deliver good reforms. After 2014, markets are likely to be consolidated at this level. However, the long-term outlook is positive," SBI Funds Management's Chief Investment Officer Navneet Munot said here on the sidelines of an event today.
At the same time, the capital market is expected to deliver good return on a year-on-year basis in future due to likely gains owing to a sharp decline in crude prices as well as a weak commodity market, he said.
"Overall, the mood is upbeat, which is driven by political change and recovery in the macro-economy and also due to the fall in global commodity prices," Munot said.
Financial services provider Edelweiss is also of the view that market would remain volatile, yet continue to give good returns.
"Market could be volatile in the short-term as I don't see any huge rally until March. Rather, I believe that the Sensex may close at the 28,000-29,000 mark by the fiscal-end," Edelweiss President Vikas Khemani said.
"Still, I personally feel that the market will give a 10 per cent to 15 per cent returns on a year-on-year basis even at this level," he said.
"The market is likely to witness more such shocks in days to come, which will be caused by external factors," Yale University's Professor of Economics and Global Equity Vikram Mansharamani said.
"For the capital market growth, we will have to get the investors' psychology. It was going down as investors' psychology manifested in selling pressure which resulted in the Indian stock market tanking by more than 800 points in a single day recently," he said.
