'The long-term outlook for equities remains strong'
Earlier, the estimates for growth of the Indian economy in FY09 ranged from 7-7.5 per cent. Now estimates have been downgraded to 6.7-7 per cent. What is causing these downgrades?
The downward revision has been on account of weakening global economic prospects due to intensification of the global turmoil. The growth outlook for India remains positive. However, pressure is expected to some extent on corporate profitability on account of cyclical slowdown due to high inflation and interest costs, tight credit scenario, and global influences.
India will be a gainer as commodity prices correct. With commodity prices declining, and India being a domestic demand led economy, we expect India to outgrow all other economies.
Have we seen the worst of the financial crisis in the West, or will there be more bad news?
The global financial crisis could possibly be in its last leg. This has been possible because of the prudent monetary and fiscal measures by governments and central banks across the world. Realising the enormity of the situation, they introduced measures to avoid a big meltdown. Efforts such as capital infusion into banks by western governments, support to money market funds, and guaranteeing of fixed deposits by governments have helped reduce the impact. Initiatives towards improving accounting norms are
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