New Delhi, March 5 (IANS) The head of Asia Equity Strategy at HSBC, Herald Van Der Linde, emphasized that India’s growth story is driven by robust earnings growth rather than macro factors like central bank decisions or interest rates. Van Der Linde highlighted the distinctiveness of India’s earnings growth compared to other countries, stating that global investment funds view India and China separately.
Van Der Linde expressed his expectation of a gradual increase in India’s market rather than a sharp rally. India’s economy surprised with an 8.4 per cent GDP growth in the third quarter (October-December), projecting a robust 7.6 per cent economic growth rate for the financial year 2023-24. The encouraging growth was led by a double-digit growth in the manufacturing sector at 11.6 per cent and a solid growth rate in the construction sector at 9.5 per cent.
The Ministry of Statistics highlighted the resilience of the Indian economy, citing a 7.6 per cent GDP growth rate in the fiscal year 2023-24, surpassing the 7 per cent growth rate in the previous fiscal year. Van Der Linde acknowledged the influence of rising global interest rates, escalating US inflation, and a significant correction in the US market on India’s market trends, indicating that emerging markets, including India, might align with the US market trends to some extent.
In conclusion, the analysis by HSBC’s Herald Van Der Linde underscores the significance of India’s earnings growth in shaping its economic trajectory, positioning the country favorably amidst global market dynamics. The substantial GDP growth rate in the recent quarter reflects India’s resilience and potential for continued economic expansion, offering investors opportunities in the evolving market landscape.
