Bernstein Downgrades Indian Equities to 'Neutral'; Nifty Upside Capped at 7.5%

• Bernstein has downgraded Indian equities to 'Neutral' citing high valuations and limited upside potential.
• India is among the most expensive global equity markets, trading at over 20x forward P/E, significantly above the 15.1x global average.
• Historically, elevated valuations have favored cheaper markets, a trend that may re-emerge after FY24's expensive market flows.
• Bernstein projects Nifty at 28,100 by FY28, implying only a 7.5% return from current levels.
• Analyst Venugopal Garre highlights the importance of valuation discipline given modest earnings growth and limited market catalysts.

Why It Matters: Bernstein downgrades India to 'Neutral' citing high valuations and limited Nifty upside of 7.5%.