The level of optimism about business environment among India's Chief Financial Officers for the second quarter of this year improved further amid bull run in the domestic stock market, and expectations of a new leadership post election, says a D&B report.
According to the Dun & Bradstreet CFO optimism index, nearly half of the surveyed CFOs expressed optimism regarding the macro economic scenario for the Indian corporate during the April-June quarter of this year.
The Composite CFO Optimism Index for Q2 2014 increased by 13.9 per cent on a quarter-on-quarter basis and by 1.9 per cent on a year-on-year basis.
"The survey conducted by D&B India reveals that the optimism among the CFOs which witnessed a revival during Q1 2014 continues to remain upbeat during Q2 2014," Dun & Bradstreet India Director-Risk Management Solution, Arvind Raghav said.
Raghav further said "optimism
of the CFOs is likely to have gathered strength as the domestic stock markets continue to record new historical highs, rupee demonstrated some resilience and expectations that a new leadership post election could lift the economic prospects build on."
The survey reflects that around 44 per cent of the CFOs expect liquidity position of their company to increase and around 45 per cent expect availability of funds in the market to increase.
Moreover, around 50 per cent and 48 per cent of the CFOs expect no change in their need for short term and long term funds, respectively, during the April-June quarter 2014.
The optimism level of India's CFOs also seem to have gathered momentum pursuant to the recent project clearances by Cabinet Committee on Investment and Project Monitoring Group.
"Nonetheless, in order to translate the optimism amongst the corporate into an upturn in the investment cycle, effective and speedy implementation of structural reforms to correct the economic imbalances would be required," Raghav said.