Even as foreign portfolio investors pull back, Indian equities are holding up, propped by domestic buying. Market veteran Gautam Trivedi points to a growing split between economic fundamentals and market appeal to foreigners. With India seen as less attractive than AI-linked and commodity-driven emerging peers, domestic retail and institutions are stepping in to absorb FII outflows and support benchmarks.
Indian equities may look calm, but experts including Kunal Vora warn that macro stress is building behind the scenes. Rising crude oil and a weakening rupee could pressure costs and sentiment, while signs of complacency raise the risk of earnings cuts. Analysts also expect downward revisions to Nifty earnings estimates for FY27 as economic softness shows through.
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Mahindra Lifespace Developers reported a 21% rise in sales bookings to Rs 3,405 crore last fiscal, driven by stronger demand for its residential projects. The company’s pre sales momentum suggests housing demand remains steady, supporting near term confidence as it moves into FY26 with a larger order book than before.
Indian equities have trailed global peers over the past year, hurt by soft earnings, elevated valuations, and foreign investors trimming holdings. The picture may be improving incrementally as valuations look more reasonable and policy reforms, along with global shifts, could draw fresh flows. Analysts suggest a potential rebound within 12 months, with attention turning to specific sectors.
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