India's equity market is expected to continue outperforming global peers in the Hindu calendar year of Samvat 2079, aided by strong corporate earnings, analysts said.
Profit is likely to grow over 20 percent in 2023, led by strong credit offtake and a revival in private capital expenditure.
However, money managers expect volatility in returns from the equity market to remain high, given concerns over an impending global recession and geopolitical flashpoints in Europe and Asia.
The benchmark stock indices were resilient in Samvat 2078, with the Sensex and the Nifty losing about 1.89 percent and 2.59 percent, respectively, since last Diwali.
Although these were the first negative returns since 2016, the MSCI Emerging Markets index dropped 31 percent while the MSCI ACWI index lost 25 percent during the same period.
For global equities, Samvat 2078 turned out to be a challenging year, given headwinds including rate hikes, the energy crisis, the Russia-Ukraine conflict, continued supply disruptions, outflows from foreign investors, and heightened inflation.
End of cycle
Morgan Stanley said recently stocks in emerging markets and Asia excluding Japan are close to completing their bear market cycles. Nomura Research said Asian equities, including chipmakers, may bottom in the next few weeks after reviewing indicators on the last 12 US recessions and five chip cycles.
"... over the medium-term (>12 months), we see risk-reward quite attractive on Asian stocks. Assuming China does reopen sometime in early 2023 and stocks attempt to anticipate the end of the US recession (NMR: 4Q23), it is likely that a sustained recovery in Asian stocks may occur sometime in the first half of 2023," Nomura Research said in a report.
Profit is likely to grow over 20 percent in 2023, led by strong credit offtake and a revival in private capital expenditure.
However, money managers expect volatility in returns from the equity market to remain high, given concerns over an impending global recession and geopolitical flashpoints in Europe and Asia.
The benchmark stock indices were resilient in Samvat 2078, with the Sensex and the Nifty losing about 1.89 percent and 2.59 percent, respectively, since last Diwali.
Although these were the first negative returns since 2016, the MSCI Emerging Markets index dropped 31 percent while the MSCI ACWI index lost 25 percent during the same period.
For global equities, Samvat 2078 turned out to be a challenging year, given headwinds including rate hikes, the energy crisis, the Russia-Ukraine conflict, continued supply disruptions, outflows from foreign investors, and heightened inflation.
End of cycle
Morgan Stanley said recently stocks in emerging markets and Asia excluding Japan are close to completing their bear market cycles. Nomura Research said Asian equities, including chipmakers, may bottom in the next few weeks after reviewing indicators on the last 12 US recessions and five chip cycles.
"... over the medium-term (>12 months), we see risk-reward quite attractive on Asian stocks. Assuming China does reopen sometime in early 2023 and stocks attempt to anticipate the end of the US recession (NMR: 4Q23), it is likely that a sustained recovery in Asian stocks may occur sometime in the first half of 2023," Nomura Research said in a report.
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