With commodity markets remaining soft and uncertain, it is likely the money will flow into equity markets with strong upsides, such as India.
Most analysts expect growth in the sales of Nifty-50 companies to decelerate, albeit marginally, in the quarter ended December compared to the corresponding period of 2013-14, with metals and real estate companies pulling down earnings.
Sensex rose 5.8% this year, against a 3.2% rise in Nifty; Axis Bank inclusion may blunt Sensex edge
In the domestic market, the Tata Group has lost ground in the passenger car business.
That resulted in a 50-basis point improvement in operating profit margins on a sequential basis.
Investors turn their attention to export-driven sectors.
Fresh investments by corporates up just 5.8% in FY17, lowest since 1992
Slowdown and liquidity squeeze by RBI have put India's top 10 indebted firms in a tight spot. But they have a few options.
In India, bond yields have fallen nearly 70 basis points in the last one year.
FIIs have offloaded stocks worth Rs 13,110 crore
This weakness is likely to continue in the near-term.
Many analysts find market expensive, even at current levels.
For equity investors, the risk-to-reward ratio is worsening.
Sales expansion also down 4.4%
The rise in India Inc's market value was led by asset-light firms.
A full-blown recovery remained elusive for India Inc in the July-September quarter, even as it overcame the challenge of achieving profitable growth.
Indian companies typically have higher return on equity.
Over the past four quarters, the Sensex companies' earnings trajectory has improved sharply because of a weak rupee.
Benchmark share indices gained for the fifth straight session on Thursday led by index heavyweight Reliance Industries.
This was even as the country's economy grew by 7.3%.
Higher crude oil prices also translate into better corporate earnings for India's top companies
Indian CEOs might like to make some serious course correction.
World trade has been growing slower than world GDP since 2012.
This is largely on the back of Tata Steel's expansion at Kalinganagar, as well as JLR's in China and Brazil
Corporate India at present is more indebted than all state govts put together.
Fourteen per cent of the $16 billion invested by Ratan Tata in M&As abroad has been written off by his successor.
The sharp fall in the rupee's value against the dollar during the July-September quarter, it turns out, has come as a boon for corporate earnings.
Stock prices is due to valuation expansion
But experts say downside limited, pockets of opportunities for investors
Companies from the capital goods space will under-perform.
Technically, the Indian economy is on road to recovery.
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Net profit grew 25.4% in Q4 but revenue growth, lower at 8.5%, suggests lack of volume expansion.
Revenue yield on every rupee of investment fell to Rs 1.06 in FY13 from Rs 1.20 in FY08.
Adani Enterprises plans to invest a total of $25 billion in the next five years.
India Inc did not perform well during December quarter.
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Investors often forget that the movements in indices such as the Sensex reflects the performance of its constituent stocks; nothing else.
The finance ministry is not only keen to split the roles of CMD, but also wants to appoint them for a fixed tenure of five years.
