India’s growth may be less than 6 percent in 2023, Goldman reduced the estimate

The brokerage said that the RBI may increase the repo rate by 0.50 basis points in the December review meeting and 0.35 percent in the February 2023 meeting. With this, the repo rate will reach 6.75 percent by February next year.

Goldman reduced growth estimates

Following the continuing uncertainty around the world and worsening of the COVID-19 situation in China, the American brokerage firm goldman sachs Has made a sharp cut in the projections for the domestic economy for the year 2023. The brokerage company estimates that next year India’s economic growth may remain below 6 percent, whereas in the previous estimate, the growth was said to be close to 7 percent. However, on the other hand, the brokerage house said that the domestic stock market will remain buoyant and investors can gain more than 10 percent growth in Nifty.

What are the estimates of the report

Goldman Sachs has estimated India’s economic growth rate to be 5.9 percent in 2023. This figure is one percent less than the estimate of 6.9 percent growth rate given earlier. The brokerage house has predicted that two phases of economic growth can be seen next year. In this, in the first half of the year 2023 i.e. in the period from January to June, the economic growth may remain slow. At the same time, there is every possibility of economic growth picking up again in the second half due to increase in investment, improvement in markets around the world.

At the same time, it is estimated that the Reserve Bank will continue to increase its rates. The brokerage said that the Reserve Bank of India (RBI) may increase the repo rate by 0.50 points in the December monetary policy review meeting and 0.35 percent in the February 2023 meeting. With this, the repo rate will reach 6.75 percent by February next year.

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Will earn in the stock market

However, on the other hand, if the brokerage house estimates are to be believed, then in the year 2023, the returns in Nifty can be more than any bank FD. Regarding the Indian stock market, Goldman Sachs also said in the report that by December 2023, the Nifty of the National Stock Exchange could reach the level of 20,500 points. With this, investors can get a return of up to 12 percent. The brokerage company, however, has not given any target for the BSE Sensex.