Last year has been a rocking one, with the Indian market scaling new peaks but as we step into the new year, the market seems to be at a crossroads.
On one hand, India looks set for the next innings of growth, emerging out of a long spell of weak investments, a paralysed banking system, and poor earnings growth. Cleaner corporate and bank books, combined with tax cuts and changes in labour laws, the pitch is ready for the investment cycle to begin. Add to the mix the so-called revenge spending following the easing of Covid restrictions and the economy could soon be firing on all cylinders.
The other side of the story is the global economy, facing numerous challenges as supply disruptions feed into inflation stoked by the gush of liquidity unleashed by central banks.
If quantitative tightening is an inevitability markets are coming to terms with, the real and present danger of under-investment in commodities and persistent supply constraints juxtaposed against a slower-than-expected pace of growth of China owing to the government’s steadfast approach to realign the economy and reduce leverage signals nothing but chaos.
Markets have a nasty habit of springing surprises when expected the least and that, too, from the most unlikely of the quarters. All forecasts are ridden with risk, but we do our best to help you make an informed call on the market: deep dive into data to tell you the factual story and bring you the best market minds to share their wisdom.