Chart Beat: Promoters ditch large caps and mid caps alike as crude worries loom
Also read: Biden’s take on India’s economy is both bizarre and bothersome Investor are cautious for several reasons even as the Indian economy is expected to perform better than its Asian peers in FY25. A key near-term worry is elevated crude oil prices, which would reduce companies' profits and hamper India’s fiscal position.
Usually, large caps are seen as better than mid and small caps during times of increased market volatility, but expensive valuations and the risk of lower-than-expected earnings growth in FY25 may have prompted promoters cut their stakes in these companies, too. The MSCI India index is trading at a one-year forward price-to-earnings multiple of about 20, according to Bloomberg data, a steep premium to the MSCI Asia-Ex Japan and MSCI Emerging Markets indices.
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