Market Outlook: Is The Worst Behind Us? 3 Factors That Could Turn India’s Headwinds Into Tailwinds

The Indian market has faced heavy selling pressure over the past two years, driven by currency depreciation, weaker earnings growth and the global focus on AI-led capital expenditure. However, these headwinds could gradually turn into tailwinds for India as the rupee stabilises, corporate earnings recover and global capital allocation broadens. Deepak Gupta, Senior Fund Manager - Equity, JM AMC, explains why the recent correction could mark a turning point for Indian equities. The discussion also looks at strong bank credit growth, improving corporate performance and why a slowdown in AI-related capex could redirect capital towards markets where India has stronger opportunities.