Property Market, Corporate Spending To Keep India’s Growth Resilient, Says Jefferies

India’s growth is likely to remain resilient despite the global slowdown, aided by its property market and corporate spending, according to Jefferies.

The global phenomenon of rising interest rates, which has stirred most markets, will fail to weigh on the country’s property markets and corporate spending, the brokerage said in a note.

That is because “the Indian property cycle has a multi-year pent-up demand and is more dependent on pricing sentiments than mortgage rates”, the brokerage said. Meanwhile, corporate sector leverage is at a cyclical low, and spending will likely rise, it said.

Jefferies expects India’s GDP growth to witness at best a marginal slowdown due to these rising rates.