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Indian equities could gain as earnings growth strengthens, says PL Capital
Sandip Raichura, PL Capital’s director, expects the benchmark indices to move about 10% higher and argues domestic fundamentals could limit downside if Middle East tensions intensify.
Sandip Raichura, CEO of Retail Broking and Distribution and director at PL Capital, said Indian benchmark indices have room to rise as earnings growth strengthens over the coming quarters, according to an interview covered by LiveMint Markets.
Raichura argued the market is better equipped to handle geopolitical disruptions than it was a few years ago, pointing to energy diversification, supply chain and shipping route reconfigurations, and greater investor resilience during periods of uncertainty.
He cited Middle East tensions as a key overhang for global markets, along with concerns around the monsoon and an elevated interest rate regime. He expects any move toward resolution to help crude oil prices stabilize, ease supply chain disruptions in globally traded commodities, and moderate inflation pressures.
While noting that the Middle East remains a critical energy and trade chokepoint, Raichura said any correction is likely to be limited, with the Nifty potentially retesting recent lows if tensions intensify, but without a significant drop below them given supportive domestic fundamentals.
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