Diwali to cheer you next year: Assocham

Segments such as banking, power, infrastructure, civil aviation and real estate are particularly facing problems at present and most of the firms in these sectors are resorting to various means to get rid of excessive debts, it said.

Banks, in particular, have seen a big rise in their non- performing assets while the real estate firms are finding it difficult to liquidate their inventory, where large money is blocked, it added.

"While between the Mahurat trading of last Diwali and the current festivities, Sensex has gone up by about 1,000-1,500 odd points, the sentiment remains muted despite some pick-up in the last few months driven largely by the recent Finance Ministry initiatives," Dhoot said.

However, in the horizon of 9-12 months, the situation is expected to improve as the CEO respondents see inflation coming under large control, interest rates softening and the global environment improving, Dhoot added.

"While we manage to keep up our spirits high during this Diwali, we see better and brighter prospects in the second half of 2013-14," he said.

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