Vinit Sambre highlights risks to earnings growth from weak consumption trends and potential reduced government spending, impacting the market. Retail liquidity drives smallcaps rally, with investors optimistic about sustained growth amid election sentiments and FOMO. Sambre says: "Any potential downward revisions in earnings forecasts could pose a risk of corrections in the market over the next 2-3 quarters."
For India, DSP notes, a mix of strong current account and FPI inflows, especially in debt markets as well as RBI’s wait and watch approach for interest rate cuts has helped the currency and allowed monetary policy to remain stable