Stock market valuations normalising, expect decent returns hereon, says Avinash Agarwal of Bandhan Life amid US-Iran war

The Indian market is seeing valuation normalization, with banking and consumption sectors poised for growth. A strong credit cycle and government support are key drivers.

• •Avinash Agarwal believes the credit cycle is still good and banks could do reasonably well.
• •Government incentivising consumption could lead to a positive uptick in demand for the consumption sector.
• •Stock market valuations are normalising, suggesting decent returns are expected.
• •Risk flag: Geopolitical tensions (US-Iran war mentioned in title, though not elaborated in text)
• •Risk flag: Potential for unexpected policy changes affecting consumption incentives