What to expect from Indian equity markets in 2023 as performance cools

While India has been a standout market this year, with the NSE Nifty 50 Index up above 7%, compared to an 18% slump in global stocks, it remains the most expensive in Asia

Indian stocks that offered a refuge from losses that plagued global equity investors in 2022 look set to lose momentum next year as sky-high valuations weigh on market enthusiasm.
 

That’s the consensus from analysts and strategists, who also expect the rupee to underperform emerging-market currencies broadly and the nation’s bonds to benefit from inclusion in major global indexes.

If there is some recovery in global growth and sentiment, over “6-12 months some of these markets that have become oversold may do better than India because India has outperformed so much in the last 18 months,” said Hiren Dasani, managing director