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Top brokerages highlight selective opportunities across Indian equities, with Motilal Oswal bullish on V-Mart Retail and VA Tech Wabag, while Morgan Stanley remains cautious on L&T Finance despite earnings upgrades.
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Indian sovereign bonds face record foreign outflows in December as rupee weakness, fading rate-cut expectations and global reallocations weigh on sentiment, pressuring bond prices and borrowing costs despite prospects of index inclusion boosting future inflows.
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Indian stock markets ended 2025 as the world's worst performers. Foreign investors pulled out billions due to currency depreciation and expensive valuations. However, 2026 offers hope. Supportive policies, easing trade risks, and potential rate cuts are expected to boost domestic growth and earnings. This could lead to a market recovery, attracting renewed investor interest.
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