INSUBCONTINENT EXCLUSIVE:
Familiar ghosts could be haunting marketmen in the new Samvat year ahead
A collapse of the trade talks between the US and China, prolonged economic slowdown, a possible global recession, liquidity crunch and
continued weak corporate earnings back home are some of the key risks that may negatively affect the domestic equity market in Samvat 2076,
relationship between these two economic giants has been tumultuous at best
Uncertainty on the Brexit front and a flareup in tensions in West Asia have not helped the market either.
Global as well as domestic
slowdown will be a key risk going ahead
Similarly, RBI has lowered its growth projection for the ongoing financial year to 6.1 per cent from 6.9 per cent
The World Bank has trimmed its forecast for this financial year to 6 per cent from 7.5 per cent
India reported June quarter GDP growth at a six-year low of 5 per cent, surprising everybody
Slacking corporate earnings growth is another concern
24.36 exactly a year ago to 26.75 on October 23
This means Nifty50 has turned 9.8 per cent expensive in last one year.
Meanwhile, earnings per share (EPS) climbed 3 per cent to 470.76 from
Many global experts in the past had complained that the Indian market has become most expensive among all emerging markets.
The liquidity
crunch in the market that started in September last year, thanks to the collapse of IL-FS, is far from over
Many companies defaulted in Samvat 2075, aggregating a total exposure of Rs 7,600 crore ($1.1 billion) worth of local-currency and
international bonds.
The liquidity crunch has also affected banks as their slippages and NPA have increased
key risks to the market include further delay in capex revival, currency depreciation, a sudden surge in crude oil price and further