Volatility May Linger, but Market Poised for Recovery After March: JioBlackRock MF CIO

The stock market may continue to see some volatility over the next one or two quarters, but post March, an improvement at a broader level is expected, JioBlackRock Mutual Fund chief investment officer Rishi Kohli said on Monday.

He stressed that the projections are "based on fundamental, macro, cycles", and expressed confidence that stability will return as earnings and broader data start aligning.

JioBlackRock Mutual Fund is a 50:50 joint venture between Jio Financial Services and USD 12 trillion global asset manager BlackRock.

Talking to PTI, Kohli noted that the market has endured a "lot of pain” over the past year, adding that "the worst of the price pain seems to have happened", though "some more pain and volatility may be there".

This anticipated turbulence, he explained, stems from "a mix of fundamental, macro and geopolitics", where "the collective data was not pointing to a clear direction".

This lack of clarity is because "some data is good, some is not good, and some has just started changing for the better", he said.

According to him, it "will take a couple of quarters for the various data to align and start pointing in a similar direction, which is when the market moves much more smoothly".

Beyond macro factors, Kohli said, "earnings have seen some volatility on average across the entire spectrum of the listed markets".

However, this is expected to "start stabilising and improving after a quarter or two", which "should hopefully help give the tailwind to the Indian equity markets to resume its long-term upward trend," he added.