Indian equities have constructive outlook over long-term: Report

NEW DELHI: Indian equities recovered in April despite geopolitical tensions and elevated crude oil prices, and the markets indicate a constructive phase in the long term, a report said on Thursday.

The report from HSBC Mutual Fund said India’s investment cycle is expected to stay strong, supported by infrastructure spending and private capex recovery.

Potential trade deals with the EU and the US are likely to support manufacturing growth and export competitiveness.

The report noted that Nifty valuations are trading near their 10‑year average levels and that near‑term risks persist from geopolitical tensions, high crude prices, weaker rupee, and below normal monsoon forecasts.

The fund house predicted India’s growth to remain quite resilient despite the global macro-economic challenges and the country's investment cycle to be on a medium-term uptrend supported by government investment in infrastructure and support to manufacturing.

The Reserve Bank of India is expected to maintain a prolonged pause on policy rates while keeping liquidity supportive, it said.