- India has slowed down drastically over the past 2 years from over 8% GDP growth to below 5% in the 2nd quarter of the current fiscal. Slowing demand coupled with the credit crunch post-IL&FS fiasco late last year resulted in a significant underperformance of the markets during the period. However, the back to back measures taken by the Govt. and RBI in the recent past to address the slowing consumption and fixed investments in the economy with a view to boosting the economy should help the market improve in the near future.
- The transmission of RBI cuts, restoration of PSBs (Public Sector Banks), improving sentiments in the Auto and Real Estate Sectors should assure cyclical recovery in FY21. The drop in oil prices, low bond yields, and benign inflation should further act as tailwinds for the domestic economy. With the US-China expected to reach a trade truce in the near future and the recovery in the economic activities coupled with a lower base would help the Indian economy to pick up the pace by early 2020, and the markets should outshine its peers in FY20-21.
Please contact ALTwealth Team for a more informed PMS and AIF Investments.