“So we think that the economy is a lot closer to the pre-pandemic path than what even official data is suggesting,” he said
The Indian economy is growing faster and doing way better than what is captured by the country’s official data, said Neelkanth Mishra, head of equity strategy India and Asia Pacific at Credit Suisse.
“We think that the economy is a lot closer to the pre-pandemic path than what even official data is suggesting,” he said in an interview with CNBC TV18.
The brokerage firm’s head of research said India is likely to grow at 7 percent in FY24 as against the consensus estimates which peg the real growth to slip below 6 percent.
“From the perspective of those of us in the markets, I think it’s (upward trend) already visible in revenue growth for many of the companies,” he said.
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Mishra is of the view that there is scope for growth of up to 14 percent on the benchmark indices and growth will depend on 12-month forward earnings per share, price to earnings ratio globally and India’s risk premium.
He expects earnings per share during FY24 to be 12-15 percent higher and mentioned that while India’s risk premium to global price-to-earnings has corrected, it is unlikely to rebound to previous levels.
“Which is why I expect that the trend will be time correction instead of a very sharp decline,” he added.
Among sectoral bets, he highlighted banks, cement and construction as his preferences. But believes that IT and metal companies can come under some pressure in the near term.
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