Indian economy will grow fastest in 2015: Credit Suisse
08 Dec 2014
The Indian economy will see the fastest dollar-nominated growth in the world in 2015, according to a Credit Suisse study released today.
The brokerage's India economists project the country to see the fastest nominal GDP growth in dollar terms in 2015, and they say the growth gap is widening India and the rest of the world.
India, according to Credit Suisse, is growing faster than its emerging market peers like Brazil, Russia and China, because of its remarkably low base. This will make India the fastest-growing economy in the world in 2015.
Fastest nominal GDP growth in dollar terms in 2015 could increase the gap between India and the rest of the world, according to Credit Suisse.
Corproate India's earnings trajectory is also expected to see strongest growth with the least severe downward revisions.
However, Credit Suisse is recommending stocks with a strong earnings visibility, as the nature of growth in India has not changed meaningfully.
Given the widening differential in growth between India and the rest of the world, investors are likely to continue to pay a premium for growth and the market is not expensive in both absolute and relative terms, says Credit Suisse.
The bank also said the Indian market is likely to see strongest earnings growth among its Asian peers and even globally.
The bank named Gujarat Pipavav Ports Ltd, Havells India Ltd, HCL Technologies, HDFC Bank, Kajaria Ceramics, Maruti Suzuki India and Sun Pharmaceutical Industries as its top buys.
Among its least preferred stocks were Bharti Airtel, state-owned Bharat Heavy Electricals Ltd (BHEL), State Bank of India, and Tata Steel were its least preferred stocks.
