Skip to content
Hindi News, हिंदी समाचार, Samachar, Breaking News, Latest Khabar – Pratirodh

Hindi News, हिंदी समाचार, Samachar, Breaking News, Latest Khabar – Pratirodh

Primary Menu Hindi News, हिंदी समाचार, Samachar, Breaking News, Latest Khabar – Pratirodh

Hindi News, हिंदी समाचार, Samachar, Breaking News, Latest Khabar – Pratirodh

  • Home
  • Newswires
  • Politics & Society
  • The New Feudals
  • World View
  • Arts And Aesthetics
  • For The Record
  • About Us
  • Featured
  • Politics & Society

Indian Stock Gains To Be Limited In 2020 As Economy Slows: Reuters Poll

Nov 27, 2019 | Pratirodh Bureau

FILE PHOTO: A man walks past the Bombay Stock Exchange (BSE) building in Mumbai on October 4, 2018

Indian stocks are set to rise further over the coming year, according to a Reuters poll of equity strategists, but those gains will be limited as fiscal stimulus and easy monetary policy fail to reverse an economic slowdown.

The BSE Sensex index was forecast to rise another 6.7% to 43,645 by end of next year from Monday’s close of 40,889. It has gained over 13% in the past two months and repeatedly set record highs after the Indian government announced several measures, including a corporate tax cut.

That expected rise in stocks in the Nov. 11-26 poll of 50 strategists would be half the rally so far this year and similar to the average rate for fixed deposits — a relatively safe asset — in Indian banks.

“The slew of measures announced by the government in recent months and the Reserve Bank of India reducing rates should result in only a very gradual recovery in demand over the next 12 months,” said Sher Mehta, director at Virtuoso Economics.

“As a result, the pace of economic recovery and earnings growth is likely to be subdued over the next two years. This in turn should cap stock market gains over the next 12-month period and beyond.”

When asked what would most likely drive Indian stocks over the next 12 months, a significant minority of respondents — 17 of 48 — said it would be a recovery in demand and 15 analysts said global capital inflows.

Foreign portfolio investors (FPIs) have turned net buyers of Indian equities after being net sellers in July and August. Capital inflows in domestic equities touched a seven-month high in November, according to data from National Securities Depository Ltd (NSDL).

“Buying opportunity enthused FPIs (are set) to look into the Indian market. FPIs are expecting stable governance, and we are at the bottom of everything — whether it is GDP, unemployment or consumption. From here, improvements are expected,” said KK Mittal, vice president at Venus India.

Still, less than a fifth of strategists in the poll said fiscal stimulus was most likely to be the major driver in gains over the coming year.

“The government is announcing stimulus time and again, but the stimulus will not have an immediate impact on the economy or on consumption or investments,” said Mittal.

A separate Reuters poll predicted the RBI would cut its key interest rate for the sixth consecutive time at its meeting next week and ease again next year, which might provide a further boost to domestic equities.

But the average price-to-earnings ratio is currently at a high not seen since at least the turn of the millennium, and the recent surge in stock prices has raised concerns over their valuation.

“I see a selective downside in stocks that have already moved up too much because of valuation concerns. We can see some correction due to valuation reasons in those stocks that have taken the market to an all-time high,” said Rudramurthy B.V., managing director and research head at Vachana Investments.

Tags: BSE Sensex, consumption, economic slowdown, equity strategists, fiscal stimulus, Foreign portfolio investors, FPIs, gdp, global capital inflows, indian stocks, monetary policy, National Securities Depository Ltd, NSDL, RBI, Reserve Bank of India, stock prices, unemployment

Continue Reading

Previous Maharashtra: CM Designate Uddhav Thackeray, Wife Rashmi Meet Governor Koshiyari
Next Japan Clears Restart At Nuclear Reactor Closest To Epicentre Of 2011 Quake

More Stories

  • Featured

Cracks Appear Among Farmer Groups After Storming Of Red Fort

40 mins ago Pratirodh Bureau
  • Featured

SC Suspends Ruling On Man Who Molested Girl After Outcry

1 hour ago Pratirodh Bureau
  • Featured

Deep Sidhu Denies Removing Tricolour, Calls Protest ‘Symbolic’

9 hours ago Pratirodh Bureau

Recent Posts

  • Cracks Appear Among Farmer Groups After Storming Of Red Fort
  • SC Suspends Ruling On Man Who Molested Girl After Outcry
  • Deep Sidhu Denies Removing Tricolour, Calls Protest ‘Symbolic’
  • Australia Confirms India Players Subjected To Racial Abuse
  • India Retains Ban On 59 Chinese Apps, Including TikTok
  • Farm Protesters Battle Police To Plant Flags At Red Fort
  • Earth Losing Ice Faster Today Than In Mid-1990s: Study
  • Farmers Ride Flag-Bedecked Tractors In Republic Day Protest
  • Job Losses From Virus Four Times As Bad As 2009 Financial Crisis
  • Troops Had ‘Minor Face-Off’ With China In Sikkim: Govt
  • Factory to Faraway Village: Behind India’s Mammoth Vaccination Drive
  • Police To Let Protesting Farmers Into New Delhi On Republic Day
  • Farmers Allege Conspiracy To Kill 4 Of Them During Tractor Rally
  • Tree Planting Efforts Push Out Pastoralists In The Himalayas
  • A Year After Wuhan Lockdown, A World Still Deep In Crisis
  • Farmers To Step Up Protests After Rejecting Govt Offer
  • Farm Laws: Govt Offers Suspension, Farmers Want Repeal
  • BJP Members Amplify False Claim About Microchip In Vaccine
  • India’s Vac Diplomacy In South Asia Pushes Back Against China
  • ‘Your Land’? Native Americans Question Inaugural Song

Search

Main Links

  • Home
  • Newswires
  • Politics & Society
  • The New Feudals
  • World View
  • Arts And Aesthetics
  • For The Record
  • About Us

Related Stroy

  • Featured

Cracks Appear Among Farmer Groups After Storming Of Red Fort

40 mins ago Pratirodh Bureau
  • Featured

SC Suspends Ruling On Man Who Molested Girl After Outcry

1 hour ago Pratirodh Bureau
  • Featured

Deep Sidhu Denies Removing Tricolour, Calls Protest ‘Symbolic’

9 hours ago Pratirodh Bureau
  • Featured

Australia Confirms India Players Subjected To Racial Abuse

9 hours ago Pratirodh Bureau
  • Featured

India Retains Ban On 59 Chinese Apps, Including TikTok

1 day ago Pratirodh Bureau

Recent Posts

  • Cracks Appear Among Farmer Groups After Storming Of Red Fort
  • SC Suspends Ruling On Man Who Molested Girl After Outcry
  • Deep Sidhu Denies Removing Tricolour, Calls Protest ‘Symbolic’
  • Australia Confirms India Players Subjected To Racial Abuse
  • India Retains Ban On 59 Chinese Apps, Including TikTok
Copyright © All rights reserved. | CoverNews by AF themes.