Chennai, July 18
Credit Suisse India expects Indian markets to see better prospects in the second half of 2022. The second half of the year could prove to be better compared with the 9 per cent decline the benchmark Nifty 50 Index witnessed in H1 2022, the foreign investment advisory firm said.
Investor focus, of late, has shifted from inflation to growth risks or potentially a recession in the developed markets, it said. For Indian companies, slower top-line growth remains a key risk in the next few quarters. “Nevertheless, commodity prices have started to ease and that could cushion margins, which are already reeling under significant cost pressures. Moreover, slower economic growth also means reduced probability of a more aggressive monetary policy tightening in India,” CS said.
The key risks to India’s economy, and thus the market, stem from crude oil prices — where our view remains neutral — and a worsening balance of payment situation, it added.