"DOMESTIC EQUITY MARKET IS LIKELY TO PERFORM WELL DURING THE FIRST HALF OF 2023"
Indian Economy & Market|January 2023
Oil price is the most critical factor for the Indian economy and markets in 2023. If it remains at subdued level of around $80 a barrel for most part of 2023, then the domestic markets would do well in that possible scenario
G.Chokkalingam
"DOMESTIC EQUITY MARKET IS LIKELY TO PERFORM WELL DURING THE FIRST HALF OF 2023"

What to expect in 2023?

The domestic equity market is likely to recover at least around 7% during the first half of CY2023. India maintaining fastest growth among major economies in the world and recent crash in crude oil price by over 33% would help the Indian markets to outperform in H1CY2023 also. Further, record level of banking credit growth, robust crop outlook from both Rabi and Kharif crops, improvements in railway earnings, robust inflow of remittances & tax collections, moderation in inflation rates, etc. would augur well for the domestic markets during H1CY2023.

What are thechallenges going forward?

There are three major challenges any possibility of crude oil price rallying in the second half of 2023 as the global economic growth is expected to recover from the middle of 2023; any possibility of emergence of new deadly Covid variants; and any possible major war in Taiwan. Otherwise, India's rate cycle would peak by mid-2023 and the same would help the economy to pick up growth momentum. However, by end of 2023, any possible uncertainty on the outcome of 2024 General Elections could be a possible risk factor for the domestic markets.

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