The investment banking firm continues to favour domestic-focused companies over export-oriented sectors, citing resilient local demand and steady capital expenditure trends. | Photo Credit: REUTERS/FRANCIS MASCARENHAS
The brokerage said the upgrade reflects sustained domestic strength, improving policy support and expectations of solid corporate earnings.
The investment banking firm continues to favour domestic-focused companies over export-oriented sectors, citing resilient local demand and steady capital expenditure trends.
It projects MSCI India earnings to grow 13 per cent in 2026 and 14 per cent in 2027, reinforcing confidence in the country’s medium-term fundamentals.
The firm noted that although Indian equities continue to trade at a premium, the valuation gap versus other emerging markets has narrowed to below long-term averages. It added that a potential trade resolution between the US and India could further improve sentiment and spark a market re-rating.
JP Morgan said the downgrade cycle that weighed on equities in recent quarters is now over, supported by both fiscal and monetary policies that are aligned to bolster growth, sentiment and earnings. It also emphasised that MSCI India’s elevated valuations appear justified by robust fundamentals and strong domestic investment flows.
Benchmark indices scaled to record highs on Thursday’s trade. Sensex reached an all-time high of 86,055.86, crossing 86,000 mark for the first time. Nifty 50 jumped to a record high of 26,310.45 after 14 months.
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Published on November 27, 2025
