Next year will be positive for equities, says Credit Suisse

Credit Suisse also believes the economic growth forecasts of 7.5 per cent for next year could be difficult to achieve

Credit Suisse expects the Indian market to deliver positive returns in 2018; but, it has abstained from setting any targets for the Sensex or Nifty. The brokerage is forecasting low-teen growth in earnings for the next fiscal year (FY19), lower than the consensus estimate of 22 per cent. The markets, therefore, could deliver low-teen returns too, if valuations have to stay at current levels, said Neelkanth Mishra, managing director and India equity strategist at Credit Suisse.

Mishra said while the price-to-earnings (P/E) multiple is higher compared to historical averages, it is not expensive compared to global equities.  The June quarter