Crossroads - Feb 2023 - Online Demat, Trading, and Mutual Fund Investment in India

Letter to investors

Dear Investor,

India is glorified to be a forerunner in the next leg of global economic recovery. India has kicked off 2023 with elevated volatility as benchmark indices Nifty, and Sensex ended negatively.

Considering economic shocks delivered by the Russia-Ukraine crisis, the union budget was critical from a ‘what next?’ standpoint. Biting the silver bullet, the Government presented a pro-growth budget, albeit at a cost to fiscal prudence. Notably, the budget is smart about allocating to pockets of the economy that can trigger a much more significant butterfly effect on critical economic metrics, including employment, credit offtake, consumption and the overall Capex cycle. The administration’s alignment is a crucial step in the right direction for India to lead the next cycle of global economic recovery.

Given that critical economic data is often subject to revision, it is prudent to view it from a directionality standpoint and not in terms of absolute change. In line, critical segments of manufacturing, industrial production, services & business confidence reflect promise for an upside.

Considering India’s relatively lower integration with the global value chain, it is expected to be less impacted by international spillovers versus EM counterparts. Suppose India can become the strongest when the world is at its weakest (reeling from the most significant crisis). In that case, it is only left to the imagination to perceive what India can achieve in better times.

“To win tomorrow, you must act today. India is winning – today.”

There is so much that has happened and much more than we anticipate. This is effectively captured in Fisdom Research’s latest edition of its monthly outlook on the Indian economy and capital markets – CapView. This month, the report is titled – “Cross Roads”. You may have already caught onto the reason, but there is much more.