MUMBAI: Credit Suisse stated on Thursday that India's faster growth than the country's official data suggests warrants an upgrade to the equity outlook. The Swiss brokerage upgraded Indian stocks to "benchmark" from "underweight" and stated that the benchmark indices could grow by as much as 14%.
According to Neelkanth Mishra, the head of research at the brokerage firm, the nation will experience real growth of less than 6% in FY24, in contrast to consensus estimates of 7%. Mishra stated to reporters that the brokerage's analysis has taken into account a comprehensive data set in order to arrive at its expectation, whereas the consensus estimates are solely based on official data.
According to Mishra, the growth in dense fuels over the past three years has been more than 4% per year, which is higher than the growth in real GDP. He added that the BSE500 companies' revenue increases also point to faster growth.
“Due to a number of domestic drivers, we are anticipating a stronger acceleration in India's GDP growth in 2023. “The impact of rate hikes, a slowing global economy, and the necessity to reduce the balance-of-payments (BoP) deficit should be partially offset by a revival in government spending, an increase in low-income jobs, and an easement of supply chain bottlenecks,” he stated.
He stated that the risk factors continue to be a slowing global economy, reliance on foreign capital, and reliance on imported energy.