The prime stock index in India ’Nifty-50’, which represents the leading companies in the economy, delivered nearly 30% return and outperformed many of the comparing indices of world markets last year. After a 11% correction in the beginning of February, driven by the 2018 Union budget of India and a smaller global breakdown, raises the question if the index will re-gain its value and continue rallying under 2018. A huge rising, committed middle class and a free-spending younger generation, not to mention business-friendly government reforms, signal potential. For the next-coming two years the IMF predicts India to be one of the fastest growing economy in the world and corporate earnings are expected to grow with 18%. However, far from everything looks bright. Among the key risks for the near future include stretched valuations, volatile oil price, and the pace of rate hikes by global central banks.

 

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