On Tuesday, January 11, A wholly owned subsidiary of YES Bank, YES Securities released a report titled ‘Sense and Sentiment Report: Envisioning 2022 and Beyond.’ The report highlights India’s earnings growth over the next three years.
YES Securites in its report have predicted that Nifty is expected to hit 21,000 points by 2022 and 32,000 points in 2025. The reason will be the abundance of liquidity which can help in the growth of equities. Household consumption is expected to rise to 46% in the next four years. The household savings is likely to be at 19% of GDP increasing the quantum of disposable income to be spent on consumption.
The consumption will strengthen by India’s demographic dividend with India’s young population that is highest among the top 10 economies in the world. “Interestingly, consumption will not be dented by inflation. YES Securities research sees tell-tale signs of consumption revival on both ends of the spectrum – higher agricultural production to deal with food price pressure and increasing average monthly spend per credit cards in India,” stated in the report.
Global markets are unlikely to impact the Indian outlook as rise in the cost of capital will be extremely gradual with FED normalizing ultra-cheap monetary policy. Whereas the Indian trends are expected to follow the global benchmark.