Jefferies expects Indian equities to outperform Asia

Jefferies expects Indian equities to outperform the Asia-Pacific region despite a difficult year for the market. Its Asia Maxima report assigned India a 12% allocation, above the 10.5% weight in the MSCI Asia Pacific ex-Japan index, while projecting 17% earnings growth in the next fiscal year.

The report noted that Indian equities had declined 15.6% in dollar terms during 2026 and 13.4% in local-currency terms. That made India the region’s second-worst-performing market after Indonesia, which fell 42.3%. Despite the weakness, Jefferies said economic data showed resilience and that India’s structural growth outlook remained intact. 📈

For the broader market, the view matters because earnings recovery and domestic economic growth are key supports for valuations after the recent decline. Jefferies projected 6.5%-7% real GDP growth and 11%-12% nominal growth for FY27. The report also said earnings growth could rise from 14% previously, although the excerpt did not provide the full earlier comparison or the sector-level estimates.

OI Charts data showed the Nifty 50 closing at ₹22,520 on 9 Oct 2026, up 1.3% for the session. Trading volume was 296,205,852, while the index remained near the lower end of its 52-week range of ₹22,180 to ₹23,489. The index gained 0.4% over five sessions, indicating that the recent rebound remained modest against the wider market decline.

Traders will watch whether earnings revisions begin to reflect the projected improvement, alongside the next round of macroeconomic data and corporate results. The index’s recent low near ₹22,180 and its 52-week high near ₹23,489 provide observable reference levels for assessing whether sentiment is stabilising or weakening further. Domestic fund flows, foreign investor activity and the performance of cyclical sectors will also help determine whether the reported growth outlook is being reflected in prices. 🌏

Source: Daijiworld, 10 Oct 2026

Not investment advice. For informational purposes only.