Photo: Hemant Mishra/MintMumbai: Indian stock markets have posted their best one-month pre-budget gain in 13 years. The Economic Survey projected India’s economic growth to accelerate to 7.5% in the next financial year from an estimated 6.75% in 2017-18. “The government choosing to target an FY19 fiscal deficit of 3.0% of gross domestic product (GDP) could be the main positive surprise. That said, the stock rally will be sustained only if the promised reforms and growth recovery lead to a pick-up in corporate earnings growth. There have been no earnings estimate upgrades despite high optimism for a revival of earnings growth, and Indian stock valuations are steep.

Source: Mint January 31, 2018 14:38 UTC