The level of optimism among India’s chief financial officers about business environment for the July-September quarter touched a five-quarter high, a survey finds out.
The Composite CFO Optimism Index for July-September (Q3 of 2016) rose by around 6 per cent on a quarter-on-quarter basis and 16 per cent year-on-year, Dun & Bradstreet said in a report.
“The continued stability in the rupee and the debt market even after Brexit has boosted the optimism level of the CFOs,” Arvind Raghav, Director, Dun & Bradstreet India, said.
As per the findings, nearly 77 per cent of the CFOs expect domestic macroeconomic scenario to remain favourable in July-September of 2016 as against 65 per cent in the preceding quarter.
Around 57 per cent and 62 per cent stated no change in need for raising short-term and long-term funds, respectively, for the third quarter of this year.
“The thrust in policy continuity as evident in the clearance of the Insolvency and Bankruptcy Code and the marked increase in the productivity level in Parliament demonstrates the government’s intent in improving the business scenario,” Raghav added.
Raghav further noted that “news about the development of the La Nina weather pattern, an imperative for revival in demand scenario, especially in the rural segment, has infused buoyancy to the confidence level”.
More than 50 per cent expect availability of funds in the market to increase, and around 56 per cent CFOs are optimistic about the liquidity position of their company.
The survey revealed that even as more than two-thirds of the CFOs anticipate cost of funds to remain same or come down, more than half expect availability of funds to increase.