Indian Markets In 2023: Proceed With Caution, Warn Experts
NDTV
The Reserve Bank of India is likely to use every opportunity to rebuild its reserve stockpile as inflows return to emerging markets, a move that could weigh on the rupee.
Indian stocks that offered a refuge from losses that plagued global equity investors in 2022 look set to lose momentum next year as sky-high valuations weigh on market enthusiasm.
That's the consensus from analysts and strategists, who also expect the rupee to underperform emerging-market currencies broadly and the nation's bonds to benefit from inclusion in major global indexes.
If there is some recovery in global growth and sentiment, over "6-12 months some of these markets that have become oversold may do better than India because India has outperformed so much in the last 18 months," said Hiren Dasani, managing director at Goldman Sachs Asset Management. "But in the medium term India will do much better because of the compounding opportunity of growth."
Here's what to expect from Indian markets in 2023:
