We believe the recent slowdown in Indian markets is a temporary phase influenced by external factors. Importantly, India’s economic fundamentals remain stable and strong. Therefore, the uptrend is intact and should resume soon.
Election results have been interesting with NDA getting less than 300 seats and BJP falling 30 short of the absolute majority. However, our bullish market view on Indian equities remains intact.
Indian GDP projections remain strong with RBI estimating it to be 7% in FY 25 along with falling inflation of 4.5%. Our bullish market view on Indian equities remains intact.
Indian GDP showed an impressive 8.6% growth in Q3FY24 and along with other impressive economic credentials, our bullish market view on Indian equities remains intact.
The interim budget on Feb 1 was very responsible, especially in an election year. This bodes well for the Indian economy and therefore we remain constructive on the Indian equity markets.
Year 2023 ended on a good note and in spite of the present high levels, our view remains intact. The long-term economic progress in India and the equity uptrend is likely to continue, though with episodic corrections.
Even with increased geopolitical tension due to Israel Hamas war, the long-term economic progress in India and the equity uptrend is likely to continue, though with episodic corrections.
Overall, the view remains entrenched that India continues to be an oasis in a desert, but currently there is a sandstorm blowing because of global conditions.
