India's economic growth remains strong: DSP Mutual
High frequency indicators like robust GST revenues, near record high consumption of petroleum products, electronic toll collections reveal brisk economic activity
Chennai: India’s economic growth continues to remain strong even in times when the world is facing economic turbulence, said DSP Mutual Fund.
According to DSP Mutual, India's high frequency indicators remain robust like healthy GST collections, near record high volume of petroleum products sold (a proxy for consumption), electronic toll (including Fastag) collections indicating brisk economic activity along with business activity and sentiments being positive.
The recent flat performance of Nifty Index compared to a 26 per cent rally in the MSCI Emerging markets index has resulted in the vanishing of the high valuation premium that India had over its emerging market peers, DSP Mutual said.
This is a positive development as foreign inflows in India had become muted lately due to high valuations. Further consolidation and steady earnings growth can cause India to become attractive once again as we progress into 2023, the Fund said.
DSP Mutual Fund feels there is an opportunity in the bond market. Whenever RBI has raised rates, corporate bond spreads have gone up.
