JPMorgan has downgraded Indian equities to neutral from overweight. The bank warned that the Nifty index could fall to 20,500 in a bear-case scenario, implying a 15% downside from current levels. Near-term risks include elevated valuations and uncertainties from the Iran war and energy disruptions.
JPMorgan Chase shifted its rating on Indian stocks to neutral, citing heightened short-term challenges despite a positive long-term outlook. In a bear-case projection, the brokerage sees the Nifty 50 index dropping to 20,500, a potential 15% decline from recent levels. This adjustment reflects caution amid ongoing market pressures. The firm highlighted elevated valuations as a primary concern, alongside geopolitical uncertainties stemming from the Iran war and possible energy supply disruptions. These factors contribute to near-term volatility in Indian markets. Additionally, JPMorgan noted growing earnings risks, with analysts revising downward their FY27 estimates. Forecasts for MSCI India earnings per share growth have also been trimmed, signaling tempered expectations for corporate performance.
