A Tale of Resilience: FY24 Midyear Credit Outlook

In this report, our analysts take stock of how the first half of the fiscal year has been for corporate India, with industry-specific analysis and a view of sectoral trends going ahead.

Corporate India remains in good health with balance sheet deleveraging and low interest rates over the last two years. As credit growth picks up and liquidity tightens in the run-up to the festive season, we expect credit spreads to also start inching up offering risk-adjusted opportunities to invest in, like the brief spell when liquidity was tight earlier this year. Supply of good quality investment grade paper has finally increased in the bond market with the arbitrage with banking rates being nullified.