India’s $556 Billion Equity Rout Seen Worsening as Growth Cools
Live MintInvestors are expecting Indian stocks to post another quarter of losses as a slowdown in economic growth and sticky inflation hurt corporate earnings and foreign flows. READ: India’s Record-Breaking Stock Run Faces Bigger Hurdles in 2025 After hitting multiple new highs last year, India’s nearly $5 trillion equity market has come under pressure due to foreign outflows sparked by fears over falling consumption. “The pessimism can be attributed to multiple domestic and global developments that took place in 2024 and will impact local shares over a short term.” Worries over India’s growth ambitions are intensifying after the latest government figures show the economy will expand 6.4% in the current fiscal year, well below the 8% average of the past three years. strategists including Herald van Der Linde downgraded Indian stocks to neutral last week, saying investors will likely re-evaluate their positions after consensus reduced FY25 earnings growth estimates for the Nifty 50 to 5% from 15%. “Interest-rate cuts will define the broader direction of the Indian stock market.” READ: Indian Investors Hyper-Focused on Earnings Growth Amid Headwinds Respondents of the survey also expect health-care and information technology stocks — beneficiaries of the record-low rupee — to be key gainers this year.