Even though the markets have increased from lower levels, analysts have started vigilance in the upcoming quarters about the estimates of income growth of Indian industry. Standard Chartered analysts have reduced the ratings of equity markets in all major regions including India as the asset class, as there is a weak risk-earning situation due to policy uncertainty and ups and downs on American tariffs. He believes that the Nifty 50 index will touch the 26,000 mark in 12 months, which is about 7 percent from the current level.
Daniel Lam, head of equity strategy at Standard Chartered, said in a report with Fuq Hin Yap, Michael Cam, etc., ‘We remain neutral to India’s stock markets as the impact of tariffs on them is comparatively low, but negative income amendments may lead to adverse conditions. We remain underweight on ASEAN because changing the direction of export of China is increasing competition for ASEAN businesses and income speed is being affected.
Expectations more
Others like Kotak Institutional Equities Managing Director and Co-head Sanjeev Prasad also believe that the market looks more optimistic and self-conscious about the income estimates of the Indian corporate world. Prasad wrote in a report prepared with Shubhdeep Rakshit, Anindya Bhowmik and Sunita Baldwa, ‘Income estimates for FY 2026 and FY 2027 have seen a decline in some areas and companies. We believe that revenue will fall due to pressure on global and domestic growth. Currently, we are estimating a 12 percent increase in the net profit of the Nifty-50 index for FY 2026.
Prasad believes that at this stage markets can be very optimistic about the revenue of export-centered sectors such as automobiles, IT services, medicines and special chemicals in view of global GDP growth and uncertainty on American tariffs.
KIE believes that high tariffs in terms of automobiles will affect the revenue of companies like Tata Motors. The note states that very few Indian companies have operations in the US and if the US continues the current tariff on automobiles and parts, they will suffer heavy losses compared to vehicle companies with manufacturing units in the US.
First Published – April 29, 2025 | 11:07 pm IST
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