Indian equity benchmarks Nifty50 and BSE Sensex crashed over 1% on Monday, losing nearly Rs 7 lakh crore in market cap. Factors include rising global bond yields, a record low rupee, and geopolitical tensions.
JPMorgan has downgraded Indian equities to neutral from overweight, warning the Nifty 50 could fall to 20,500 in a worst-case scenario—a 15% drop from current levels. The brokerage cited high valuations and Iran conflict uncertainty as key concerns, while also flagging risks to company earnings from potential energy supply disruptions. HSBC also downgraded India to underweight, its second downgrade in two months, pointing to rising inflation risks from high oil prices and the ongoing West Asia conflict impacting India's energy-dependent economy.
