Slowdown in Indian markets temporary: PwC-CII study

A majority of India Inc believe that the slowdown in Indian market is a temporary phenomenon and have expressed confidence in the robustness of the country's economy, a study has said.     

The study, jointly conducted by CII and PriceWaterhouse Coopers, said that most of the corporates are of the view that although the sub-prime crisis in the US has had a considerable impact on the equity and debt market across the globe, but a slew of measures taken by the RBI will help India weather the storm.    

It further revealed that as a result of this optimistic approach of corporates the demand for bank finance was expected to rise in the medium term.     

The study, which had undertaken the research project to gain insights on the finance function of the corporates and how banks were able to help them, had interviewed CFOs of companies with average revenue size of Rs 3,000 cr as respondents.    

However, it said companies are worried about shrinking bottom lines, which forced them to lower costs. To maximise business synergy, joint ventures are being considered as a viable option by a significant chunk of corporates.

Here, the banks have the role to play as a facilitator in closing such deals, the study said.     In the absence of access to funds for borrowing purposes, the study said derivatives did have the role to fill in the gap and there was a discernible interest among the corporates.