Moneycontrol
Oct 03, 2016 05:09 PM IST | Source: CNBC-TV18

Ahead of RBI policy, CEOs optimistic on growth, expect rate cuts

Ahead of Reserve Bank of India's monetary policy meeting on Tuesday, CNBC-TV18 conducted a poll of 50 CEOs across sectors to gauge the state of business confidence.


Ahead of Reserve Bank of India's monetary policy meeting on Tuesday, CNBC-TV18 conducted a poll of 50 CEOs across sectors to gauge the state of business confidence.

Sectors whose CEOs were polled include insurance, metals, pharmaceuticals, energy, textiles, cement, automobiles, information technology, telecommunication, infrastructure/real estate and FMCG.

India Inc sounds optimistic on the economy's growth prospects with 80 percent CEOs expecting FY17 to be better than FY16.

A large set of corporate honchos also felt that high cost of money is impeding growth and most CEOs believe that in the next 12 months, rates can fall up to 50 basis points.

26 percent of CEOs see profit growth in the next one year for their sectors.


Below are the questions and outcome of CEOs polled on the state of the economy:

- Is FY17 a better year for Indian corporate sector compared to the previous year?


Yes: 80 percent


No: 20 percent

- Is deflation over for corporate India?


Yes: 60 percent


No: 40 percent

- Do you think high cost of money is impeding growth?


Yes: 64 percent


No: 36 percent

- How much can rates fall in the next 12 months?


50 bps: 44 percent


50-100 bps: 36 percent


100-200 bps: 18 percent


Over 200 bps: 2 percent

- Profit growth in the next one year for their sector?


See contraction: 6 percent


0-5 percent: 26 percent


6-10 percent: 26 percent


11-20 percent: 18 percent

Over 20 percent: 24 percent

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