3 weeks ago

Jefferies sees strong credit growth, capital inflows supporting Indian markets

Jefferies sees strong credit growth, capital inflows supporting Indian markets
India’s improving credit growth, domestic demand underpin bullish case: Jefferies’ Christopher Wood · thehansindia.com

Jefferies is a big money company that studies world markets.

It wrote a report about India's economy and stock market.

The report says India is doing well even though foreign investors sold a lot of shares this year.

Indian banks are lending more money than they have in over ten years.

Companies are borrowing a lot to grow their businesses.

People in India are also buying cars and homes, which shows demand is strong.

Indians living in other countries are sending money back through a special government plan.

The report thinks this could bring in even more money.

All of this helps make India's money, the rupee, more stable.

However, heavy foreign selling is still a risk to watch.

Key facts

Net foreign equity buying (July)
$2.45 billion
Foreign equity selling (year-to-date)
$25.4 billion
Bank credit growth
17-18% year-on-year, highest in over a decade
Corporate lending growth
Around 20% (agriculture 17%, retail 16%)
RBI NRI deposit scheme inflows
About $41 billion so far
Expected NRI scheme total
$80-100 billion over next two months
Government bond inflows since June
$8.7 billion
Rupee vs US dollar
95.17 (touched 96.96 in May)

Quotes

Christopher Wood

Jefferies Global Head of Equity Strategy

“All this increases the likelihood that the rupee should stabilise.”
thehansindia.com

Sources

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