Economy entering strongest phase; Nifty to touch 11,500 in 2018: Report -

Economy entering strongest phase; Nifty to touch 11,500 in 2018: Report

Credit: business-standard.com

  • About: 2 months ago
  • 11 views

The is at the cusp of entering its strongest growth phase and a full blown is yet to play out with the wide-based expected to touch 11,500 in 2018, says a report.

An economy enters the strongest phase of growth when stocks, and commodities all rally together.


"We believe that India is at the cusp of entering this phase and full blown is yet to play out," said in a note.

According to Edelweiss Investment Research, consumption and exports are boosting economic growth in the country.

While consumption has displayed sharp recovery after the cash crunch in early 2017, investments are witnessing only a government supported recovery which is inadequate but effective for a few sectors like railways, roads and power transmission and distribution (T&D), it said.

Regarding the uptick in equities, the report said, stock markets are driven by low inflation, profitability and increase in financial savings.

Though valuations are "rich", a continued shift in allocation of funds from debt to equity are likely to continue.

"A comparison of Nifty's earning yield versus the 10 year government bond yield shows that equities are still attractive as compared to debt instruments and we should expect shift in the allocation of funds from debt to equity to continue," the report said.

expects to touch 11,500 in calender year 2018. is currently hovering around 9,700 level. The wide-based index had breached 10,000 mark for the first time on July 25.

Regarding trade, which is a key driver for India's growth engine, the report said synchronous global growth is likely to boost international trade as well as Indian exports.

"Export growth is held up despite facing pressure from a strong rupee. We expect exports to remain healthy with global industrial activity reviving," the report said.

Moreover, consumption which had slowed post demonetisation is slowly picking up in India as reflected in 2-wheeler and passenger vehicle sales and this in turn is likely to lead to a revival in investments.

"We believe that India's strong consumption story will drive in investment as witnessed from 2003-08 and earlier episodes," it said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)



Follow Us on Twitter

Indian economy cusp entering strongest growth phase full blown bull market play with wide-based Nifty expected touch 11500 2018 says report. An enters when stocks bonds commodities rally together. believe that India this out Edelweiss Investment Research said note. According Research consumption exports boosting economic country. While displayed sharp recovery after cash crunch early 2017 investments witnessing only government supported which inadequate effective sectors like railways roads power transmission distribution (T&D) said. Regarding uptick equities report said stock markets driven inflation profitability increase financial

Related stories with Economy entering strongest phase; Nifty to touch 11,500 in 2018: Report

Steve Buscemi & Rupert Friend Star in Satirical Dark Comedy
Steve Buscemi & Rupert Friend Star in Satirical Dark Comedy "The Death of Stalin" 2 months ago
Emmy award-winning and Oscar-nominated director Armando Iannucci trains his lens on a satirical version of the historical events that followed Soviet dictator Josef Stalin's death in 1953. In the power vacuum that follows, a core contingent of ministers t
An On-Feet Look at Nike's Upcoming Laceless Air VaporMax -World News
An On-Feet Look at Nike's Upcoming Laceless Air VaporMax 2 months ago
Thanks to Instagram sneaker photographer @sneakerprophet_, we recently received an on-feet look at Nike's upcoming laceless Air VaporMax. From the photos, we can see that the laceless "Triple Black" and "Multicolor" iterations of the runner feature a silh
Donald Trump insists bigotry started 'long before my presidency' but Charlottesville mayor points finger -World News
Donald Trump insists bigotry started 'long before my presidency' but Charlottesville mayor points finger 2 months ago
US president Donald Trump has blamed "many sides" for the violent clashes between protesters and white supremacists in Virginia, but stressed the "hatred and bigotry" broadcast across the country had taken root long before his political ascendancy.
Do we Make our Dreams come True or we Remain still Dreaming -World News
Do we Make our Dreams come True or we Remain still Dreaming 2 months ago
  Do we Make our Dreams come True or we Remain still Dreaming A strong willpower and perseverance is all we need in life to give ourselves a better place in this society. It will probably not be the place that we have in our minds, because it is u
Be Blessed for Our Gratitude then We are Not Far from the Goal to Achieve Prosperity -World News
Be Blessed for Our Gratitude then We are Not Far from the Goal to Achieve Prosperity 2 months ago
Be Blessed for Our Gratitude then We are Not Far from the Goal to Achieve Prosperity   We all know that few things in life we never can achieve the success independently without the help and experti
Japan gets bronze in 4×100 relay -World News
Japan gets bronze in 4×100 relay 2 months ago
Japan won its first medal in the men’s 4×100-meter relay at a world athletics championships, finishing third after Jamaican superstar Usain Bolt, running the anchor ...
Leading F1 heads: 2021 engines can still excite without being V8s -World News
Leading F1 heads: 2021 engines can still excite without being V8s 2 months ago
Formula 1 can deliver engines that excite fans in the future without reintroducing V8 units, say leading figures involved in future rule discussions
Beaubier Dominates Race One At Sonoma Raceway -World News
Beaubier Dominates Race One At Sonoma Raceway 2 months ago
Cameron Beaubier put together the best performance of his season today in the MotoAmerica Championship at Sonoma Raceway, the two-time MotoAmerica Superbike Champion riding his Monster Energy/Yamalube/Yamaha Factory Racing R1 to a 6.1-second win in a race
Peter Hickman claims man of the meeting crown with hat trick of wins at the MCE Ulster Grand Prix -World News
Peter Hickman claims man of the meeting crown with hat trick of wins at the MCE Ulster Grand Prix 2 months ago
Peter Hickman once again highlighted why he is one of road racing’s brightest stars as he took three race wins on his way to the man of the meeting crown at the MCE Ulster Grand Prix. The 30-year old took a dominant victory in the opening Lisburn &
Two on the bounce: Rodrigo takes pole at the Red Bull Ring -World News
Two on the bounce: Rodrigo takes pole at the Red Bull Ring 2 months ago
Gabriel Rodrigo (RBA BOE Racing) put in another stunner in qualifying for the Austrian GP, taking his second ever pole – and the second for Argentina – just a week after his first at Brno. The RBA BOE Racing Team had even more to celebrate as teammate
Pasini pips Morbidelli to pole – by a single thousandth -World News
Pasini pips Morbidelli to pole – by a single thousandth 2 months ago
Mattia Pasini (Italtrans Racing Team) starts the NeroGiardini Motorrad Grand Prix von Österreich from pole position, as the veteran Italian beat compatriot Franco Morbidelli (EG 0,0 Marc VDS) by one thousandth of a second in qualifying. EG 0,0 Marc VDS h
Joker in the pack: Marquez overturns predictions for pole -World News
Joker in the pack: Marquez overturns predictions for pole 2 months ago
Marc Marquez (Repsol Honda Team) blasted out the blocks to pole position at the NeroGiardini Motorrad Grand Prix von Österreich, carrying forward his earlier pace on Saturday to stake a claim on victory at the Red Bull Ring. Expected key frontrunners Duc