Indian Equities Positioned for Resilient Medium-Term Growth

Indian equities are predicted to perform robustly over the next 6-24 months, driven by broad-based earnings recovery, domestic demand, and policy support. PL Capital highlights simultaneous recoveries in consumption, investment, and exports, although risks such as inflation and global economic factors remain.

In a promising forecast, Indian equities are anticipated to deliver strong performance over the medium term, spanning 6 to 24 months. This outlook is underpinned by a widespread recovery in earnings, robust domestic demand, and enduring policy support, as per a report by PL Capital.

The report underscores a broadening earnings cycle with concurrent recoveries in consumption, investment, and exports. These recoveries are poised to bolster market outlook and generate momentum across multiple sectors in the forthcoming quarters.

While the ongoing capital expenditure and government spending are expected to support industry growth and boost business confidence by drawing in private sector participation, the report also flags risks such as high inflation and global economic slowdown that could affect market performance.

Despite potential volatility in export-linked sectors due to fluctuating commodity prices, PL Capital maintains that Indian equities are well-equipped to withstand global uncertainties, buoyed by strong domestic fundamentals.

For investors, a balanced, risk-aware strategy with a large-cap focus and selective mid-cap investments is recommended to leverage a broadening earnings recovery while managing downside risks.

Ultimately, the report concludes that Indian equities are likely to remain resilient, sustained by a favorable domestic growth climate and supportive policies amid global challenges.

(With inputs from agencies.)