Domestic buying, likely earnings rebound to boost Indian shares in near-term: Jefferies

Adani Energy Solutions

13/08/2025 07:06

** Jefferies says Indian equities set for short-term rebound after underperforming MSCI Emerging Markets .MIEF00000PUS by 24 pct points over 2024

** MSCI India index .MIIN00000PUS trailed MSCI EM by 18 pct points since mid April, weighed by slower growth, weaker earnings, soft rupee

** Brokerage says history shows India often bounces after 15%–20% relative underperformance

** Sees record domestic inflows, likely September-quarter earnings rebound from low base as triggers for potential bounce in markets

** Notes India–U.S. trade dispute resolution could also lift sentiment, aid rally

** But, warns rally may not sustain as share price to earnings growth mismatch, fresh equity supply loom

** Prefers recent laggards like Lodha LODH.NS, Cholamandalam Investment CHLA.NS, Adani Energy ADAI.NS, Shriram Finance SHMF.NS, Jubilant Foodworks JUBI.NS, Mankind Pharma MNKI.NS, NTPC NTPC.NS, Crompton Greaves Consumer CROP.NS

** Remains bullish on cement

** Has 26,000 as year-end Nifty 50 .NSEI target - 6% above last close, 1% below record high

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))