Indian equities are expected to continue their double-digit gains in the current quarter due to favorable conditions compared to other emerging markets. The Nifty 50 index has historically performed well in the July-September period, with high single-digit to low double-digit returns. Strong foreign portfolio investor (FPI) inflows, supported by strong corporate earnings growth and favorable macroeconomic conditions, have driven the recent market rally. FPIs have shifted their focus from China to India due to the improving Indian macros, GDP growth, and corporate earnings potential. Global fund managers are recommending dedicated allocations to India within Asia in the second half of 2023.
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