SINGAPORE : In a year when Indian equities emerged as the best performers in Asia and the country took advantage of a structural shift in supply chains from a pandemic-hit China, forecasts of robust economic growth are set to keep stocks on a firm footing.
Next year's optimism for India is driven by strong corporate earnings, a post-pandemic retail boom and an economy set to grow by 6 per cent in the next fiscal year - which will make it the world's fastest-growing major economy in 2023. The world-beating stocks performance has helped India to double its weight in MSCI's emerging markets index to 16 per cent from 2019, but overseas investors have missed out in the local rally.
Graphic 1: M&A in India soars in 2022, https://fingfx.thomsonreuters.com/gfx/mkt/jnvwyykexvw/e1Mdn-india-m-a-boom-in-2022.png "India is going to be one of the main focuses within Asia for us in developing exposure in 2023," said Adam Watson, co-head of Asia Pacific at Partners Capital, which works with endowments, foundations and others globally, and handles $45 billion in assets.