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Vetri Subramaniam, CIO of UTI AMC believes that given the rising probability of recession, one should begin to see earnings cuts. He was talking to CNBC-TV18 about global markets and the economy.

“Global earnings growth, and particularly the US, have not been cut too much for ’23, and given the rising probability of a recession or some sort of a setback in their economy, you should start to see earnings cuts there. And some of that will translate into the Indian earnings numbers as well.”

According to him, there is certainly some downdraft on the earnings forecast at this point in time.

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India has been outperforming its peers and Subramaniam believes that there are two ways of looking at this. "You could look at the last year of the market return and say, we are down 4-5 percent or you could look at how all the other markets have done which are down 20-30 percent, and then realize how much better off you are in a relative sense.”

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“We are only talking about outperformance; you cannot really decouple because 21 percent of your GDP is exports of goods and services and that is going to be the area which will first get hit if global growth slows down, but there will be a second level effect on other sectors,” he added.

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