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Assessing Valuations in India's Stock Market
By Advisor Perspectives
When considering the prospects for India’s stock market in the coming year, the primary determinants of performance at an aggregate level are the outlook for growth and underlying valuations.
Assuming India’s central government remains stable, the outlook for growth continues to improve. Given sustained low consumer price inflation and a reversal in oil prices, it is likely that the central bank (Reserve Bank of India) will ease monetary policy. Leading indicators suggest that nonperforming assets within the banking sector have peaked and are starting to moderate. We believe this should improve the availability of funds to the corporate sector, which has been an issue over the past three to four years.
Read more at Advisor Perspectives.