Report: India’s economic fundamentals stronger than previous global crises, tariff-like challenges will have limited impact

New Delhi| India’s macroeconomic infrastructure appears to be much stronger than previous global crises amid a sharp fall in crude oil prices and pressure in international commodity markets. Despite global uncertainties like tariffs, the impact on India’s economic growth will be quite limited due to domestic resilience and better fiscal health, Motilal Oswal said in a report. However, amid slowdown in the IT sector and currency war, there may be a slight impact of dumping of products from China.

All indicators of the economy in favor
According to the report, despite the recession, overall economic indicators are in favor of the Indian economy. Comparing with previous global crises such as the 2013 taper tantrum, indicators such as balance of payments, fiscal and current account deficits are strong.

Mid and smallcap shares still expensive
Unlike the global financial crisis, Indian corporates and banks are entering this phase with healthy balance sheets, very low debt and adequate capital buffer.

Midcap and smallcap shares are still expensive
The report on Indian stock markets said that recent reforms have made large cap stocks included in the Nifty-50 more attractive in terms of value. Their prices have fallen below their 10-year advance average. However, midcap and small cap stocks still remain expensive.