Reflecting a sharp disconnect between the economy and the stock market, India’s resilient macroeconomic fundamentals are being overshadowed by global liquidity pressures, leaving stocks under strain. While the Nifty has lost 13% so far this year, corporate earnings, industrial production, manufacturing output and credit growth data point to economic resilience rather than weakness.
“We are seeing a stark dichotomy in India,” Abhay Laijawala, chief investment officer, India, Lighthouse Canton. “The real economy is demonstrating strong resilience, decoupling from a hesitant stock market that remains weighed down by global macro anxieties and disinterested foreign institutional investors.”
