Market outlook for 2018 by foreign brokerages

| Updated on January 08, 2018 Published on January 01, 2018

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Here is a compilation of foreign brokerages view on the Indian economy and the stock market for 2018.

India Outlook in 2018




Bank of America Merill Lynch


More bullish earnings/growth

Less bullish multiples

Increased global liquidity to hurt P/E



Unwinding of QE programme to increase volatility

Current strength of Asian economies could raise the risk of rate rises

Most Asian markets at all time highs

Valuations one standard deviation above historical average

Kotak Institutional Equities


Strong earnings recovery in FY19 but valuations discount the same

Modest recovery in GDP growth (7.1 per cent in FY19)

Higher crude prices, weak GST revenues and unknown political outcomes add to risks

Risk of derating of multiples in sectors driven by policy, regulatory and technological changes



Strong revival in corporate earnings

Stage set for a multi-year recovery

Positive macro and lower cost of capital

Strengthening of macro economic fundamentals


Deutsche Bank


Economy poised for a cyclical upswing

GDP growth of 7.5 per cent in FY19 vs 6.6 per cent in FY18

Some pickup in private capex activity

Buoyant consumption growth

RBI to remain on an extended pause through 2018

Morgan Stanley


Full fledged recovery in 2018

Recovery in private capital spending-first time in six years

Goldman Sachs


GDP growth to accelrate to 8 per cent in FY19

Current activity indicator suggets signs of recovery

Activity growth to pick up in H12018

RBI to hike rates by 50 basis points in 2018

Credit Suisse


Growth to remain weak

Weak investment demand

Weak consumption demand due to low agricultural income

However equity market not expensive on a relative basis

Source: Reports

Compiled by Priya Kansara

Published on January 01, 2018

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