The curtain falls on a fantastic financial year. The 2023/24 financial year is an extraordinary one in many respects. Records in the financial markets, in the economy, in the corporate world and a government that is aggressively pursuing its growth strategy and creating a wow factor for India worldwide. There are many stories to tell. But I will focus on 4 in the following paragraphs before writing a foreword to the next financial year.
Records were set across the board. From returns on equity to fundraising, both public and private, FY2024 has set records beyond my memory in the last 10 years, barring the Covid years. This performance is well captured by the market and research department of the NDTV Profit platform in the form of stories and charts. Please read some of the best at the links below:
In a booming economy and markets, surpluses are commonplace. If left unchecked, they inflate the bladder. But our regulators intervened at the right time. The Reserve Bank of India and SEBI have taken a number of measures to ensure that banks and borrowers keep greed under control. SEBI deserves a special mention. The market regulator has caught fraudsters exploiting the boom through targeted measures and closed loopholes through systemic changes in the IPO market and settlement systems.
The life of the common citizen has been made easier by seamless digital payment systems that enable financial inclusion that I could never have imagined 10 or 15 years ago. This is the Aadhar or the foundation for the rapid growth of our economy. Now other countries want to emulate our example.
India's resilience in the face of the global slowdown triggered by rising interest rates and inflation is well documented.
In the corporate world, Adani Group's ability to withstand the onslaught triggered by short-seller Hindenburg's report cannot be ignored. The damage caused by the report went beyond the company's holdings. Within a very short period of time, assets were destroyed in all markets. The Adani Group fought back with a series of measures to boost investor confidence. They finally got some clarity from the Supreme Court. Back on the right track, the company is firing on all cylinders with its mega-expansion plans.
A lot, I would say. The real economic recovery will begin in the first year of the next 4-5 years. However, not without turbulence in the first few months. The first stop will be RBI policy later this week, which will most likely be status quo with the focus remaining on tackling inflation. This corresponds to the results of the 4th quarter. Leadership rather than performance keeps the engine running.
June-July will bring new news as the full Budget will set the roadmap for creating a developed Indian economy soon after the new government is sworn in.
The monsoon will hopefully keep the economy fruitful and help sow the seeds of a greener future.
For investors, the Fed could be playing catch-up and there are still no clear signs as to when rate cuts will begin. It will take at least three quarters for clarity to emerge.
Until then, a prudent strategy requires betting selectively on companies that can deliver. Returns as described in 20-23 may not be possible. This will be a year of consolidation.
NDTV Profit brings you insights and information as all the action in the markets and business is broadcast live through television broadcasts, social media and comprehensive coverage on its website.
Disclaimer: News Channel NDTV is owned by Adani Group.
Muralidhar Swaminathan is the Managing Editor of NDTV Profit.
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