|
|
|
'India's economic growth remains strong'
|
|
|
|
Top Stories |
 |
|
|
|
IANS | 16 Feb, 2023
India's economic growth continues to remain strong even in times when
the world is facing economic turbulence, said DSP Mutual Fund.
According
to DSP Mutual, India's high frequency indicators remain robust like
healthy GST collections, near record high volume of petroleum products
sold (a proxy for consumption), electronic toll (including Fastag)
collections indicating brisk economic activity along with business
activity and sentiments being positive.
The recent flat
performance of Nifty Index compared to a 26 per cent rally in the MSCI
Emerging markets index has resulted in the vanishing of the high
valuation premium that India had over its emerging market peers, DSP
Mutual said.
This is a positive development as foreign inflows in
India had become muted lately due to high valuations. Further
consolidation and steady earnings growth can cause India to become
attractive once again as we progress into 2023, the Fund said.
DSP
Mutual Fund feels there is an opportunity in the bond market. Whenever
RBI has raised rates, corporate bond spreads have gone up.
This
monetary policy is least disruptive because rates are not as high as the
previous cycle, liquidity conditions are better versus the last hiking
cycle, corporate spreads are also not very high. This means corporations
can borrow even during the tightening cycle and the rates are also more
conducive. This will help in India's growth from a long-term
perspective, DSP Mutual remarked.
DSP Mutual Fund believes that
the Banking sector is poised for an appreciation. The current dip in
banking equities is another opportunity to add lenders over borrowers.
The ratio of NSE Bank Index to NSE Metal Index bottomed out at a time
when the yield curve was very steep & RBI was about to embark on a
rate hike journey. The recent correction in Banking stocks & a rally
in Metals equities makes an attractive proposition once again. Auto
sector is also looking very promising.
The long-term earnings
trajectory for the technology sector continues to remain attractive.
Investors who have been waiting on the sidelines are likely to get a
good opportunity to buy into this valuation and price correction in the
technology sector.
"The most important thing for equity markets
in 2023 is earnings growth and softening valuations. The last 17 month
of consolidation has removed a lot of valuation froth. There is a higher
likelihood of a better market backdrop going forward," said Sahil
Kapoor, Market Strategist and head of products at DSP Mutual Fund.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
 |
 |
COVID-19 has directly affected your business |
|
|
|
|
|
Commented Stories |
 |
|
|
|
|
|
|
|