India has outperformed significantly despite so many headwinds, said Gautam Duggad, head of research and institutional equities at Motilal Oswal Financial Services.
In an interview with CNBC-TV18, he said that the mood in the market is “quite buoyant” on consumption and financials.
"As we have seen in entire 2022, things kept changing every 30 days. In January, we didn’t know that by May we will be down by 15 percent. Similarly, in May when everything looked quite dire, we have recovered almost entire losses."
Furthermore, he said, "FII (foreign institutional investor) selling which has been the talking point of the first half of 2022 suddenly became a FII buying worth $7 billion almost in August."
He also noted that the feedback analysts are getting from different corporates is that "demand environment seems to be extremely strong". "This commentary is coming across from a variety of different sectors, whether it’s discretionary consumption basket, financials, or auto," Duggad added.
On government initiatives, he pointed out that there is "commentary on capex and manufacturing which was missing since 2018".
"At the moment it looks like the way macro and micro are poised for India, and with crude having come down $20-25, and God willing it goes down by another $15-20, you might see a different sentiment once again," he opined.
"We are at Rs 1,000 for FY24 and close to Rs 845 for FY23 which basically translates into a growth of 16-17 percent earnings per share for FY23 versus the delivered number of Rs 735-714 for FY22."
He also spoke about the demand environment around the festive season - which has normalised after two years of disruption - that it "might see some upside on the earnings". He added, "Even if this Rs 1,000 of earnings is delivered without any pause or surprise, we might be talking about some upside room in the next 12 months.""If commodity prices reduce further, growth will be even stronger," he concluded.