homemarket NewsStanChart expert backs India as investment hotspot after robust earnings and strong credit demand
StanChart expert backs India as investment hotspot after robust earnings and strong credit demand
The quarterly and annual reports of several major Indian companies have demonstrated remarkable growth and profitability, even in the face of global economic challenges.
Strong earnings reported by domestic companies and a continued growth in financial credit demand shows India's potential to become an investment hotspot. And even now with favourable government policies and a thriving business environment, the country continue to be an attractive destination for both domestic and international investors and offers promising prospects for sustainable economic growth.
Fook Hien Yap, Senior Investment Strategist at Standard Chartered Banking, in an interview with CNBC-TV18, discussed the current economic landscape in India and about the impressive performance of Indian companies, emphasising the strength of their earnings.
Yap, in the discussion, also highlighted the persistent robustness of financial credit demand in the country, indicating promising prospects for the future. Expressing optimism about the Indian economy, he stated that the earnings delivered by companies in the country have been consistently strong. The quarterly and annual reports of several major Indian companies have demonstrated remarkable growth and profitability, even in the face of global economic challenges, he said.
“If we look at the earnings revision data; fundamentally that is what we look at, compared to the start of the year earnings revision has been much stronger for small and midcaps and it’s something that we prefer. In terms of sector perspective, I would like financials, industrials and healthcare,” Yap said.
The senior investment strategist attributed the strong earnings to various factors such as improved productivity, efficient cost management, and an upswing in consumer demand. The resilience of Indian companies has been particularly noteworthy amidst the ongoing volatility in global markets, further bolstering investor confidence in the country's economic potential.
Aside from applauding the robust earnings, Yap emphasised the continuous strength in financial credit demand within India. The sustained financial credit demand has also been facilitated by supportive government policies and banking sector reforms. The availability of credit at reasonable interest rates has incentivised businesses to invest in their growth initiatives, thereby contributing to the country's overall economic development.
“We think the credit demand continues to be strong. Industrials, in terms of the government's capex policy, are good, and having healthcare in there just balances it out. I mean, healthcare is a bit more defensive and if you go into a bit of an uncertain environment, we think it is good to have it in there,” said Yap.
For more details, watch the accompanying video
(Edited by : C H Unnikrishnan)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Delhi Congress chief Arvinder Singh Lovely resigns
Apr 28, 2024 10:54 AM
Lok Sabha polls: Voter turnout in Rajasthan over 62%, down by 4% since 2019
Apr 28, 2024 8:49 AM