The Nifty has been one of the best performing indexes globally in 2022 and the Indian economy, probably one of the faster growing economies. In an interview to CNBC-TV18, Sajjid Chinoy, Chief India Economist at JPMorgan and Sanjay Mookim, Strategist, Head of India-Equity Research at JPMorgan India talk explain if things look better in 2023.
The Nifty has been one of the best performing indexes globally in 2022 and the Indian economy, probably one of the faster growing economies. Sajjid Chinoy, Chief India Economist at JPMorgan believes the good news is that balance sheets are in a much better shape, which is a prerequisite to the next capex cycle.
“Bank balance sheets are in much better shape than feared at the start of the pandemic; NPAs have been lower for the most part, banks have recapitalised and seem to be less risk averse and there is pickup in credit growth,” he told CNBC-TV18.
Sanjay Mookim, Strategist, Head of India-Equity Research at JPMorgan India, meanwhile said, the brokerage is underweight on the IT space in its model portfolio as margin expansion in the sector will be more difficult than expected.
“People have built in margin expansion in FY24, which might be a bit more challenging to deliver than expected,” Mookim explained, adding that this might lead to minor earnings revisions and lower tone from management in the coming quarters as the topline slows. “We are not in a rush to buy Indian IT stocks,” he said.
Mookim added that JPMorgan is overweight on real estate as there is no evidence of demand slowdown in the sector and within the auto space, it prefers the two-wheeler companies.
For the entire discussion, watch the accompanying video