{
  "id": 303305,
  "title": "India's resilient economy to support markets but global risks remain elevated: SEBI",
  "url": "https://urgent.news/2026/08/08/indias-resilient-economy-to-support-markets-but-global-risks-remain",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-08T09:48:39.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/indias-resilient-economy-to-support-markets-but-global-risks-remain-elevated-sebi/article71321149.ece"
  },
  "original_language": "en",
  "account": "India's financial markets are projected to rely on the nation's robust economic fundamentals in 2026-27, despite uncertainties from geopolitical tensions, high commodity prices, and fluctuating foreign capital flows, according to the Securities and Exchange Board of India (SEBI) in its annual report. The report highlighted that India's economy demonstrated resilience during 2025-26, buoyed by robust domestic demand, government spending, and a strong services sector. The economy's GDP growth was forecasted to rise to 7.7% in 2025-26, up from 7.1% the previous year. Key growth drivers included private consumption and investment, which contributed to 56.7% and 31.9% of nominal GDP, respectively. Looking ahead, the global environment is anticipated to remain unpredictable, with the International Monetary Fund (IMF) projecting India's growth at 6.5% in 2026-27, compared to the global growth rate of 3.1%. India's relative strength is expected to stem from its robust domestic fundamentals, fiscal consolidation, improving inflation trends, stronger corporate balance sheets, and resilient domestic institutional investments. However, challenges persist, such as a protracted Middle East conflict, crude oil prices above $100 per barrel, which could inflate the current account deficit and raise inflation pressures. Indian equities faced a challenging 2025-26, with the Nifty 50 and broader indices falling by approximately 14% in US dollar terms due to sustained foreign portfolio investor (FPI) selling, depreciation of the rupee, valuation concerns, slower earnings growth, and the Middle East conflict's impact. National institutional investors, particularly mutual funds, mitigated these effects through robust investment flows. Foreign portfolio investor equity outflows from India surged to a record $19.7 billion throughout the year. SEBI noted that restructuring global supply chains could present new investment opportunities for India. A resolution of the Middle East conflict and normalization of energy prices would be pivotal near-term catalysts for a recovery in foreign flows. Commodity prices remain a significant risk, as higher crude prices could increase India's import bill, widen the current account deficit, and elevate inflation risks. SEBI emphasized the importance of strategic petroleum reserves, import diversification, and targeted fiscal support in maintaining macroeconomic stability. Overall, SEBI's analysis underscores a relatively advantageous domestic backdrop, yet market performance will continue to be closely tied to global geopolitical risks, energy prices, and international capital flows.",
  "summary": "The Securities and Exchange Board of India (SEBI) anticipates that India's resilient domestic economic fundamentals will continue to support its financial markets in 2026-27, despite ongoing global challenges. Despite a challenging global environment, India's economy grew at an estimated 7.7% in 2025-26, driven by robust domestic demand, government capital expenditure, and a strong services sector. However, the report warns that heightened geopolitical uncertainty, elevated commodity prices, and volatile foreign capital flows could pose challenges. The International Monetary Fund projects India's growth at 6.5% for 2026-27, compared to global growth of 3.1%. SEBI notes that a resolution of the Middle East conflict and normalisation of energy prices would be crucial for foreign capital inflows.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}