First, at a macro level, the growth and interest-rate dynamics should turn favourable, as real interest rates are expected to drop below real GDP growth for industry by the March 2018 quarter.

Second, listed corporates have delivered their balance sheets over the last two years, and free cash flows are sitting at all-time highs at over 10% of sales.

Third, the credit ratio — the numberof ratings upgrades to downgrades —has improved to 1.9 times in the first half of this fiscal year from 1.2 timesin FY2017, indicating further improvement in corporate balance sheets.

via economy: A private capex recovery is expected in 2018 for the first time in six years. Here’s why – The Economic Times