Indian Equities Face Structural De-rating Risk: Kotak Institutional Equities Warns

• Kotak Institutional Equities warns Indian equities face structural de-rating, not just a short-term correction.
• Rising disruption across sectors and insufficient corporate investment are key concerns highlighted by the report.
• The recent underperformance of Indian markets compared to global peers may signal a permanent reset in valuation multiples.
• Kotak emphasizes that investors should not view the current weakness as merely temporary, impacting future return expectations.
• A structural shift could lead to deeper de-rating for several sectors and stocks, aligning valuations with fundamentals.

Why It Matters: Indian equities risk a permanent valuation reset due to disruption and underinvestment, redefining future returns.