Summary:
According to Morgan Stanley, retail investors in India now own 23.4% of the equities market, an 8% increase over the past decade. This trend is expected to continue, driven by India's demographics, regulations, and investor education. Despite the likelihood of moderate returns, stocks contributed 11% of India's $8.5 trillion wealth over the past decade. The firm predicts new highs for Indian equity markets over the next five years.
India's corporate earnings are anticipated to rise due to increased private capital investment, corporate leverage, and higher consumption. Growth prospects remain strong, with a compound annual growth rate (CAGR) of 18-20% forecasted over the next four to five years. India's inclusion in global bond indices, as well as its success in private equity, will attract international investment. However, factors such as infrastructure constraints, geopolitical uncertainty, and economic slowdowns may affect growth.
Source: IBEF
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