ENA Economy 2025-11-11 18:18:33 <p><span style="font-size:14px"><strong>New Delhi, Nov 11 (KNN)</strong> Indias domestic growth cycle may be nearing its trough, with improving macroeconomic conditions likely to strengthen momentum in the coming months, according to a report by HSBC Mutual Fund (MF).</span></p> <p><span style="font-size:14px">The fund manager noted that easing interest rates and liquidity pressures, falling crude oil prices, and a normal monsoon are expected to support a pickup in economic activity. </span></p> <p><span style="font-size:14px">The growth cycle in India may be bottoming out. Interest rate and liquidity cycles, a decline in crude prices, and a normal monsoon are all supportive of a pickup in growth going forward, the report said, reported ANI.</span></p> <p><span style="font-size:14px">While global trade uncertainty continues to weigh on near-term private capital expenditure, the medium-term investment outlook remains positive. </span></p> <p><span style="font-size:14px">Government spending on infrastructure and manufacturing, a revival in private investments, and improving real-estate demand are seen underpinning the investment cycle.</span></p> <p><span style="font-size:14px">HSBC MF expects higher private capital spending in renewable energy, localisation of advanced technology components, and deeper integration into global supply chains to boost growth. </span></p> <p><span style="font-size:14px">Despite Nifty valuations sitting modestly above their 10-year average, the fund remains constructive on Indian equities given the resilient medium-term outlook.</span></p> <p><span style="font-size:14px">However, risks persist. Weak global growth, policy uncertainty &mdash; including tariff-related risks and geopolitical tensions &mdash; and the possibility of a moderation in government capital expenditure could weigh on momentum.<br /> Mercantilist policies adopted by certain economies were also flagged as a potential drag on private investment sentiment.</span></p> <p><span style="font-size:14px">Even so, the report highlighted rising capacity utilisation and continued expansion of production-linked incentives as key drivers that may support private sector capex. </span></p> <p><span style="font-size:14px">Overall, HSBC MF expects domestic tailwinds and increasing private investment&mdash;particularly in clean energy&mdash;to help sustain Indias growth trajectory.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 44040 https://knnindia.co.in/news/newsdetails/economy/indias-growth-cycle-rebounds-on-rate-easing-improved-liquidity-hsbc-mf 2025-11-11 18:18:33 knnindia.co.in