Sensex companies posted just 8.8% EPS growth. The weakest since COVID. 8 of the top 30 companies posting declining profits and India’s market cap slipping below $5 trillion. Looks like the froth is coming off.
This is what happens when valuations run ahead of fundamentals. Indian equities were priced overly and now since companies are delivering mediocre earnings. The correction was something that was expected it’s looks something like a reality check that was long waiting to happen.