'Earnings slowdown could pose short-term risks for Indian market'

How is your team viewing the current market valuations and preparing for possible corrections? Fears of an economic slowdown in the US, slowing demand in China and elevated geopolitical risks from the Middle East have raised concerns for investors. With valuations not being cheap, any slowdown in earnings growth could pose short-term risks for the Indian market. Risks could also emanate from food price shocks and commodity price spikes led by geopolitical conflicts. The consensus estimate for Nifty 50 earnings growth is 12 per cent for FY25 and 16 per cent for FY26. Robust macro growth and resultant corporate earnings growth would be key drivers for equity returns, both well-placed for the medium term. Despite high valuations in the

This article was originally published on October 27, 2024.