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'Economic recovery to gain further traction during H2FY22'
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SME Times News Bureau | 20 Nov, 2021
Economic recovery is expected to gain further traction during the second half of FY22, said India Ratings and Research (Ind-Ra).
Accordingly,
the rating agency expects the economic recovery to gain momentum on the
back of fading impact of the Covid-19 pandemic along with favourable
financing and external demand conditions.
Consequently, it has maintained an "improving outlook" on domestic corporates for the second half of FY22.
"Entities
with a strong market share and healthy balance sheet will continue to
show strong earnings, although margin may moderate. However, sectors
which consume commodities will face challenges in the complete
pass-through of input prices," the agency said.
Besides, it said
that most sectors would continue to witness a surge in demand post the
second Covid wave as they were better prepared than during the first
wave.
"The fiscal and monetary measures have backed economic
activities by maintaining adequate liquidity. The entities have learnt
to make quick structural changes after the first Covid wave and are now
better poised to face challenges if subsequent Covid waves appear."
Furthermore,
the rating agency expects the 'Production-linked Incentive' (PLI)
scheme in specially steel to lead to large capex announcements by both
large and small steel companies.
On volatility in commodity
prices, it observed that since the second wave, especially during
Q2FY22, the risk appetite in the system has reasonably improved.
"This
has largely been driven by the strong corporate performance, buoyant
external condition and sustained ultra-loose monetary policy conditions.
Ind-Ra expects that the financing condition to remain conducive in
H2FY22, backed by the easy money conditions," it said.
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| Customs Exchange Rates |
| Currency |
Import |
Export |
US Dollar
|
₹95.3
|
₹93.6 |
UK Pound
|
₹127.7
|
₹123.7 |
Euro
|
₹110.65
|
₹106.9 |
| Japanese
Yen |
₹59.75 |
₹57.9 |
| As on 24 Jun, 2026 |
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