Business · India Bureau
India poised to outpace Asian peers in second half, despite headwinds
India's equity markets are expected to recover momentum in the latter half of the year after a sluggish first half performance, though a heavy IPO pipeline and international risks could temper gains, according to market analysts.
LSN India ·
Indian stock markets appear positioned to outperform other Asian economies during the second half of 2024, reversing the weakness seen in the first six months, investment managers said. However, the anticipated recovery may face constraints from a substantial queue of initial public offerings and broader geopolitical uncertainties affecting global markets.
Abakkus Investment Managers highlighted the recovery potential for Indian equities but cautioned that several factors could limit the extent of the rebound. The domestic IPO pipeline represents a significant consideration for market participants, as the influx of new listings could affect valuations and capital flows within the broader market.
Global risk factors also loom over the outlook. International developments, including macroeconomic trends and geopolitical tensions, continue to pose headwinds for emerging market equities. Despite these challenges, India's structural growth advantages and economic resilience are expected to support relative outperformance compared to regional peers during the coming months.
Market watchers are monitoring how the domestic economy navigates the balance between positive fundamentals and near-term obstacles. The second-half performance will likely depend on how effectively Indian markets absorb the IPO supply while maintaining investor confidence amid global uncertainties.