India's economy is poised for strong growth, with ANMI President Kamlesh Shroff predicting a boost for equity markets in the new Samvat year, driven by cooling oil prices and improved global conditions and domestic investor support.
Economic Outlook for the New Samvat Year
India's macroeconomic fundamentals remain strong, with economic growth of over 7 per cent expected to support equity markets in the new Samvat year, said Kamlesh Shroff, National President of the Association of NSE Members of India (ANMI). Speaking to ANI at the NSE on the occasion of Muhurat trading and Deepawali, Shroff highlighted that cooling crude oil prices and improving global conditions would provide a strong tailwind for domestic corporate growth compared to the previous Samvat year.
"Our overall growth story remains intact at a 7%+ rate, so from that perspective, I think markets will do well," Shroff said, identifying lower crude oil prices as a key positive driver for Indian equities. He said a decline in crude prices could strengthen the rupee and help bring foreign institutional investors (FIIs) and foreign portfolio investors (FPIs) back into the domestic market.
Global Factors and Market Volatility
Shifting focus to global developments, Shroff said greater clarity following the US elections could help ease geopolitical tensions, restore business confidence and reduce market volatility. "Another factor is the US elections, which have already shown clarity, so geopolitical tensions should now ease. From that perspective, businesses will definitely perform much better than they did in the last Samvat," he said.
Domestic Liquidity and Investor Trends
On domestic liquidity and capital flows, the ANMI President said retail investors and domestic institutional investors had supported the market even as foreign investors remained net sellers over the past two years. "We have seen a strong foundation where domestic investors have been at the clear center for the last two years," Shroff said.
He added that "retail investors have actively supported the markets while FIIs and FPIs were on the selling side, and DIIs and Mutual Funds were on the buying side." He expressed optimism that a revival in foreign investor participation, alongside continued domestic investment, would further strengthen the market. "Now, if FIIs and FPIs also start buying, I think that will be great news for the overall Indian markets," Shroff added, wishing all market participants and viewers a prosperous Diwali.
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