Promising Indian corporate earnings

Weak global growth forecasts have left investors in a fix, but Eastspring Investments in a report says robust Indian corporate earnings could become the next investment destination. Indian corporates have high confidence levels, credit growth has been good and private investments have recovered strongly. Additionally, corporate debt stands at less than 50% of the GDP and has fallen in recent years.

“India’s economic resilience partly stems from the fact that exports currently make up less than 20% of GDP, making it less vulnerable to slowing global demand,” said Anand Gupta, Portfolio Manager at Eastspring Singapore.

The investment manager talks about recovery in India’s real estate sector, exports of electronics and chemicals, and the rebound in economic activity with entertainment and communications stocks rising higher than they were pre-pandemic. All of these contribute to robust Indian corporate earnings.

Read the full insight at Eastspring.com.