As of November 29, 2024, India’s stock market is facing challenges with the Nifty 50 index falling into correction territory, down 10% since its peak in late September. Sentiment is muted due to high valuation concerns and reduced earnings growth expectations, which have been cut from 15% to 5% for the fiscal year 2025. Despite this downturn, some analysts believe that Indian equities may be approaching a recovery phase. Bernstein’s Venugopal Garre suggests that economic growth may be increasing in the next few months, citing investment opportunities ahead of this rebound.
Forecasts for India’s GDP growth stand at 6.4% for the 2024-2025 fiscal year, slightly lower than some other projections. Additionally, the government is focusing on boosting exports through its overseas missions to identify potential opportunities. Speculating on market dynamics, portfolio managers assert that India’s current downturn presents a buying opportunity, especially in light of potential geopolitical advantages from U.S. policy changes. Moving forward, a busy week is anticipated as major economies release crucial inflation data, while several companies plan to go public in India.
