Thanks to a pick up in government spending and receding fiscal headwinds to growth, India's domestic economic momentum is on the mend, notes Credit Suisse.
Neelakanth Mishra and colleagues at Credit Suisse in their August 18, 2015 research report titled "India Market Strategy" point out that 38% of Nifty companies beat CS estimates, the highest percentage in five years.
India's operating margin rose to three-year high
Analyzing the results of 47 companies out of 50 Nifty constituents (excluding OMCs and Sun Pharma), Mishra and team point out that aggregate Nifty sales dropped 4.3% YoY in 1Q16.The analysts note sales dropped for third consecutive quarter, with more companies reporting sales declines and sub-10% growth than in 4Q15:
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