Renuka Jain

Equity and Bond markets way forward  Equity and Bond markets way forward  India’s nominal growth has slowed meaningfully over the past decade. Almost every major drivercorporate sales, wages, tax revenues, consumption, exports has decelerated. Private capex is still not picking up in a meaningful way, while consumption remains soft due to slower income growth and higher household debt. Exports, especially services, have also lost momentum compared to the strong pre-2013 phase. Market behaviour is also flashing caution. Breadth has weakened sharply, with very few stocks hitting new highs despite the indices being near peak levels. Small and mid caps have started slipping below key trend indicators, while large caps are quietly beginning to lead again. Promoter selling and record IPO fundraising also point towards a late-cycle environment. On the other side, bonds look attractive. With inflation at multi-decade lows and government borrowing stabilising, long-duration G-Secs arou...