2023 Outlook - Year Of Reset, Recession, Recovery: Nirmal Bang's Analysis

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Nirmal Bang Report.We see 2023 as a year of three parts. The first part will continue to see a ‘reset’ between the normal of the pre-pandemic era and the new normal of the post-pandemic era. The ‘reset’ in our view, like most transformations, will carry its share of pain in the form of a ‘recession’. However, the 'recession’ may be shallow and short-lived, paving the way for a ‘recovery’ going into CY24.We are penciling in gross domestic product growth of 6% in FY24 for India based on the premise of a shallow U.S. recession in CY23 (0-1% decline in U.S. GDP). In an environment of slowing global growth, we expect commodity prices to remain relatively benign, easing the pressure on India’s macro fundamentals. While our base case has been the end of monetary tightening by the U.S. Federal Reserve and the Reserve Bank of India by the end of CY22, we now see increasing possibility of rate hikes in early CY23 as well on the back of continued strength in macro indicators. However, with inflation slowing and global growth moderating, we expect an extended pause through most of CY23, with rate cuts most likely by the end of CY23..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

2023 Outlook - Year Of Reset, Recession, Recovery: Nirmal Bang's Analysis

In context of our macro outlook, we prefer largecaps in the ‘reset’ to ‘recession’ phase as markets are likely to remain volatile.

Choose a plan