India is on the verge of a big economic recovery and earnings growth cycle, said Saurabh Mukherjea, Founder of Marcellus Investment Managers on Thursday.

“I would describe it as a healthy outlook. Early stages of economic recovery with healthy inflow can be seen in the country” he said.

Speaking about the recent correction in the market, Mukherjea said, “At the Nifty level we are still up 14-15 percent as a broader market over 12 month period. Yes, over the past month we have given up 5 percent at the Nifty level, but I do not think we should lose too much sleep about that.”

“Corporate results across India, whether in our portfolio or outside our portfolio are healthy. The Federal Reserve is continuing to reiterate that it will keep money cheap. We are seeing strong domestic flows into our funds and foreign institutional investors (FIIs) continue to remain bullish on the Indian market,” he added.

The next 3-4 months, said Mukherjea, will be good for Indian companies due to cost-cutting measures and solid revenue growth.

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(Edited by : Anshul Majumdar)