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Below the Quote on year end on behalf of Sanjay Kumar, CIO, PNB MetLife.

India Shows Strong Resilience in a Highly Volatile Year 
The year 2023 witnessed high volatility arising from geo-political issues, US banking crisis and monetary tightening by global central banks. India stood out given its macro-economic resilience. After a 7.2% GDP growth in FY23, India is expected to grow by 7% in FY24 (RBI estimates). The GDP growth in first half averaged 7.7% with the government’s capital expenditure strongly anchoring it. The strong growth in government and private capital expenditure led to high growth in the manufacturing sector. 
Consumption trends are showing signs of revival with the trickledown effect of government measures and strong growth in gross fixed capital formation. Resilience of services exports despite global volatility is noteworthy. 
Indian’s corporate earning trajectory has shown a marked improvement with strong double-digit growth witnessed over the last 3 years. The earnings growth has been broad based across sectors led by domestic-facing companies. The outlook remains strong owing to benign commodity prices, receding headwinds on the global front and continued momentum in the domestic market.    
The FII equity flows (YTD) at $18.9bn is the second highest in the last 10 years. The overall FII inflows (including debt) at $23 bn is the highest since 2014. The domestic flows have witnessed a significant shift driven by higher financial investments, with strong orientation towards equities. The strong flows (both domestic as well as foreign) explain India’s outperformance amongst key emerging markets.

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