New Delhi, Jan 15 || India’s macros (like fiscal consolidation, strong balance sheets and recovery in consumption) remain robust amid slowing global growth and the country's long-term growth prospects remain steady, projected at 6.5 per cent real GDP growth and 10-11 per cent nominal GDP growth, according to a report on Wednesday.
The strength of banks (NPAs below 1 per cent) and corporate balance sheets is notable. India Inc.’s profits are growing strong, but they are also generating large amounts of free cashflows in sharp contrast to 2003-2008, where free cashflows were in deficit, according to the monthly insight report from global financial services company Mirae Asset.
Household debt levels are also reasonable compared to global standards. India's aggregate debt to GDP is lower than in 2010, while it has risen globally, the findings showed.
"The Nifty 50 Index's valuation at 19 times FY26E and 17 times FY27E P/E is reasonable given the consensus earnings growth of mid-teens CAGR over FY23-FY27. Earnings growth is broad-based, providing better certainty,” the report mentioned.