Summary

Sharmila discussed whether India’s equity rally is driven by hype or genuine fundamentals, highlighting that valuations and positioning warrant tactical caution in the near term, but arguing that the broader macro backdrop remains supportive, with a strengthening credit and corporate profit cycle, significantly healthier balance sheets, banks well positioned to lend, a private investment cycle moving into an upswing, and structural reforms improving competitiveness and the business environment, supporting a constructive long-term outlook for growth, earnings, the currency and Indian equity markets.

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