India equity outlook cut again as foreign funds seek value elsewhere in Asia
BENGALURU: India’s stock market will trade lower by the middle of next year than it did at the start of 2026, according to a Reuters poll of equity analysts — the third quarter in a row they have cut their outlook as foreign investors move to other Asian markets. Indian shares are down more than 7.0% this year and are on track for their weakest annual performance in more than a decade, a stark…
India's stock market outlook has been cut for the third consecutive quarter as foreign investors seek value in other Asian markets, Reuters reported. Indian shares have declined by more than 7.0% this year, marking their weakest annual performance in over a decade. While some markets, like Japan, South Korea, and Taiwan, have shown solid gains, India has fallen behind.
The Nifty 50 is expected to rise by around 5.0% by the end of 2026, while the BSE Sensex is projected to reach 81,608 by year-end. However, these forecasts are the lowest in recent memory. Despite strong economic growth and robust profit growth, India is lagging behind its Asian counterparts due to a lack of exposure to AI. Overseas investors have sold roughly 2.4 trillion rupees of Indian shares this year, with the rupee falling by 6% against the dollar and crude oil prices near $90 per barrel, making the currency one of Asia's worst performers.
Domestic investors have stepped in to support the market, with systematic investment plans contributing over 319.61 billion rupees in July.
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