Wood said the domestic demand story certainly remains intact to justify the continuing belief in the equity market. Loan growth has slowed somewhat, he said, but still remains solid at 15.5 per cent YoY in late February.
Stock investors in India are bracing for challenging weeks before the unveiling next month of the government's federal budget as economic growth retreats from a peak and a resumption of selling by foreigners weighs on local shares.
The combined market valuation of seven of the 10 most valued firms eroded by Rs 1,34,139.
14 crore last week, with Reliance Industries taking the biggest hit.
Investors on Friday increased their bet that central banks would reign in inflation, sending stocks and bonds on their way to their first weekly gains in a month, but growth concerns hurt commodities.