New Delhi, Apr 9 (IANS): Indian equity indices are likely to increase in 2019 due to improving financial health of companies and the steps taken to clean-up their debt, a Centrum report said on Tuesday.

The report said that despite periodic volatility backed by political developments, economic slowdown and monsoon fears, the year 2019 would have a vast gamut of opportunities for the markets to surge.

"Indian corporate financial health is improving as the long-awaited earnings pick-up is unfolding with corporate profits-to-GDP ratio moving up to 3.1 per cent in FY2018 and is expected to reach 3.3 per cent in FY2019, from a multi-year low level of 2.9 per cent in FY2017," it said.

"With major debt clean-up taking place, Indian corporate aggregate balance sheet is also getting healthier withABSE500 (Ex-Financials) Debt-to-Equity ratio slipping to lowest levels in two decades."

Likely accommodative stance of central banks globally also would help the markets rise, according to the report.

Dovish global central banks, facing imminent slowdown in global economy, can be expected to maintain accommodative stance sustaining the risk-on sentiment in global equity including Indian equity, it said.