Indian Stock Market Poised for Strong Performance Amid Regional Declines, Report Says
Despite a 15.6% drop in the dollar, Indias stock market may outperform regional peers, with corporate earnings expected to rise by 17%.
New Delhi, October 10 (Daily Kiran) : The Indian stock market is expected to perform better than many regional markets this year, despite a 15.6% decline in the dollar. A report indicates that corporate earnings could rise by as much as 17% in the upcoming fiscal year.
According to the ‘Asia Maxima’ report by Chris Wood, Global Head of Equity Strategy at Jefferies, India is recommended for a 12% allocation compared to a 10.5% weighting in the MSCI AC Asia Pacific (excluding Japan) index.
Currently, the Nifty index has fallen by 13.4%, making it the second worst-performing market after Indonesia, which has seen a staggering 42.3% decline.
The report emphasizes that India’s structural growth story remains intact, supported by robust data. Wood estimates that India’s real GDP growth rate for FY27 will be between 6.5% and 7%, while nominal GDP growth is projected at 11% to 12%.
Additionally, corporate earnings are expected to grow by 14% in the current fiscal year, with a 17% increase anticipated for the next year. As of mid-September, year-on-year bank credit rose by 18.1%, and corporate loans surged by 21.6%. Loans to small, medium, and micro enterprises (MSMEs) increased by 25.5%, alongside a 17.3% rise in deposits.
This increase in corporate loans suggests that the long-awaited capital expenditure cycle in the private sector may finally be underway. Furthermore, machinery imports totaled $66 billion over the past 12 months, a significant jump from $29 billion in FY21.
Wood also noted that the Indian rupee may have reached its lowest point after a decline of 10.7% since the beginning of 2025.
