Indian Equities

• Indian equities remain attractive for long-term investment, driven by a recovery in corporate earnings, increased private capital expenditure, and new trade deals. • The Nifty index valuations are currently aligned with their 10-year average, suggesting a stable entry point for investors. • Despite geopolitical tensions, crude oil fluctuations, and corporate earnings volatility, Indian equities closed July with a 2.2 per cent gain.

• A new report released on August 10 indicates that Indian equities remain attractive for long-term investment despite recent market volatility. • The positive outlook is driven by a recovery in corporate earnings, an increase in private capital expenditure, and the potential for new trade deals. • Despite pressures from geopolitical tensions, crude oil price fluctuations, and earnings reports, Indian equities closed July with a 2.2 per cent gain.

• Choice International CEO Arun Poddar asserts that Indian equities remain attractive despite external risks, noting that the "India has no AI play" argument is weakening. • Poddar highlights that the AI and semiconductor rally is cooling in other markets, specifically citing sharp declines in South Korea's KOSPI and Taiwan's TAIEX. • The Indian rupee has stabilized following decisive actions by the RBI, including the implementation of the FCNR-B window.

• Indian equities edged higher on July 16, 2026, as investors balanced domestic growth against various global economic risks. • Key international developments include the Bank of Korea raising interest rates for the first time in 3.5 years to combat inflation and TSMC anticipating record Q2 profits fueled by AI chip demand. • In Singapore, AirTrunk is preparing for a US$1.5 billion REIT IPO scheduled for later this year.

• Indian equities, specifically the Nifty 50, are emerging as a "safe haven" for investors seeking a hedge against the volatility of the global AI-driven tech rally. • Investors are rotating capital into India to diversify portfolios as concerns grow over the sustainability of tech gains in markets like Taiwan and South Korea. • Market attractiveness is being bolstered by falling volatility, a stabilizing rupee, and reduced oil-linked pressures on the airline and refining sectors.

• Indian equities are facing a challenging period as investors seek to determine if the market can reverse a negative narrative of systemic decline. • While valuations are becoming more attractive, the recovery is currently hindered by significant geopolitical stress and a lack of earnings credibility. • This shift is critical for investors as they weigh the potential for a rebound against the risks of prolonged economic instability.

• Foreign institutional investors (FIIs) have sold Indian stocks on 150 out of the past 240 trading days, reflecting a sustained outflow trend over the last several months. • The selling pressure is attributed to rising oil prices, rupee weakness, and elevated US bond yields, which have made emerging market assets less attractive relative to US fixed income. • This persistent FII exit contrasts with India's overall attractiveness as a global investment destination and poses near-term headwinds for equity valuations.