Invesco Mutual Fund expects 2020 to be a better year for the markets after an extended period of weak demand and liquidity crunch in India's shadow banking sector.
“It (2020) will be a better year compared to 2019. Base effect and liquidity in the system will help growth to come back,” Taher Badshah, chief investment officer for equities at Invesco Mutual Fund, told BloombergQuint in an interview. “The system will revert to some normalcy of growth.”
This comes as India's gross domestic product growth fell to 4.5 percent in the quarter ended September, compared to 5 percent in the previous quarter. An already waning demand in Asia's third-largest economy worsened this year as businesses shied away from making new investments, consumers held back on spending and global export demand weakened.
Also Read: GDP Growth Slump: This Could Have Been Much Worse
The government's push to revive the economy through a series of recent measures is expected to strengthen growth, Badhah said. “We should see things settling down and consumer sentiment will get better. We are kind of hoping to see some spark in the rural markets as food inflation becomes beneficial to rural markets.”
WATCH | Invesco Mutual Fund's Taher Badshah on the year ahead for markets
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