Kotak Securities has shared its outlook on India’s economic trajectory, highlighting potential volatility in the near term despite positive structural trends. The brokerage emphasized BJP’s strong electoral victories in Maharashtra and Haryana as indicative of continuity in the central government’s infrastructure agenda.
Kotak expects a ramp-up in central government capex in the second half of FY25, coupled with short-term fiscal stimulus to support the market. However, it cautioned against possible earnings estimate cuts, citing challenges such as weakening consumption, elevated inflation, and disruptions in rural markets.
The report stressed the need to focus on execution rather than introducing new reforms or stimulus measures. Valuations of the broader Indian market, though elevated, remain stable. Kotak also warned that markets could face near-term headwinds due to global economic uncertainties and sector-specific pressures, advising investors to stay watchful in the coming weeks.
