When do entry points for Indian equities emerge?

Entry points for Indian equities often arise during periods of underperformance, particularly when supported by domestic growth drivers.

What caused the slowdown in Indian corporate earnings in 2025?

The slowdown in 2025 was primarily due to fiscal and monetary tightening measures implemented in 2024 by the government and RBI to control inflation.

Which Indian stock segment was most affected by the earnings dip?

The small-cap universe was the most affected, experiencing corrections as stock valuations adjusted to declining earnings.

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Indian Stocks: Entry Points in Underperformance?

2 Jan

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Summary

Underperformance periods can signal attractive investment opportunities.
Government and RBI tightened fiscal/monetary policy to curb inflation.
Small-cap stocks were most affected by the earnings growth slowdown.

Indian Stocks: Entry Points in Underperformance?

Periods of underperformance in Indian equities historically offer attractive entry points, especially when supported by domestic growth drivers. Such phases have often preceded leadership emergence in the market.

In 2024, the central government and the Reserve Bank of India enacted fiscal and monetary tightening measures. These actions aimed to curb inflation and stabilize the rupee against the US dollar, achieving their objectives but with a delayed impact on economic growth.

Through 2025, this slowdown affected consumer demand and corporate earnings growth significantly. The small-cap segment of the market experienced the most severe impact, with stock corrections occurring as valuations adjusted to the dip in earnings.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.