New Delhi, Nov 10
India’s medium‑term growth outlook remains constructive, with improving private capital expenditure and resilient consumption, which supported a strong recovery in equities in October, a report said on Monday.
"Nifty valuations are modestly above the 10-year average; we remain constructive on Indian equities," the report from HSBC Mutual Fund said.
In debt markets, the HSBC fund house said the 2-4 year corporate bond segment offers attractive opportunities, adding that inflation outlook and growth uncertainty raise the odds of a 25 bps rate cut on December 5.
Regarding equities, the report said, "The growth cycle may be bottoming out. Interest rate and liquidity cycles, decline in crude prices and a normal monsoon support a pick-up in growth".