● Strong macros:
India’s economic indicators remain strong, with real GDP growing at a higher-thanexpected
rate of 7.7% in 1HFY24. Inflation in comfortable range and RBI upgrading its GDP growth
projections for FY25 gives further comfort of ongoing momentum in the economy.
● Fed interest rates near its peak:
As the US inflation continues to remain under control and the FED
maintains the benchmark rates for the third consecutive time, the likelihood of a rate cut remains high
in 1HCY24. This could drive liquidity towards global markets, as evidenced by the rally in global equity
markets during Nov-Dec’23. Also, sharp cool down in bond yields indicates positive sentiments towards
equity to remain high in the near term.
● GST Collection remain strong:
GST collection rose 10% YoY to Rs1.65 lakh crore as well as for the period
April to December 2023 the collection grew 12% on YoY basis. Healthy collection shows that economic
activities continues to remain strong.
Geopolitical developments, FEDs stance on interest rates, recovery in rural demand and
volatility led by investors pre-empting the outcome of 2024 elections will be the key factors driving the
market sentiments. With global liquidity tightening nearing its end, a healthy domestic macro and micro
environment, strong domestic and retail participation, and expected political continuity post- 2024 General
Elections, bode well for policy momentum in India. We anticipate continued optimism in the market and
maintain a positive outlook.