FY19 to see harsher earnings cut; remain positive on markets: Credit Suisse

While the economy is going through too many unknowns, Credit Suisse believes, that the relationship between the economy and the markets is tenuous at best

Despite a near 20 per cent rise in the markets in calendar year 2017 (CY17), Credit Suisse remains optimistic on the road ahead and sees no major downside, unless global cues disappoint. In its 'India Market Strategy' report released Wednesday, the global research and brokerage house expects domestic flows to remain robust thanks to improvement in financial savings and support the market on every correction.

That said, Neelkanth Mishra, managing director, equity research at Credit Suisse does caution on more corporate earnings downgrades going ahead. On a calendar year-to-date (CYTD) basis, all sector except metals, Mishra says, have seen EPS cuts,