Nip in the air, but stock markets warming up

Synopsis Global brokerages are turning positive on Indian stocks. Improving economic conditions and reduced global uncertainty are key drivers. Stock valuations are attractive, drawing foreign investor interest. Domestic investors are already increasing their equity holdings. Policy reforms and government spending are supporting growth. This positive outlook could boost Indian equities further. A group of global brokerages – including Goldman Sachs, which has upgraded India to ‘overweight’ from ‘neutral’, reversing its October 2024 downgrade – is turning cautiously optimistic about Indian equities amid improving macroeconomic conditions and ebbing uncertainty in the external environment. The correction over the past year has brought…