JPMorgan: India Equities 'Exciting' into 2026 Despite Rupee Worries

• JPMorgan's Rajiv Batra sees a 'pretty exciting' outlook for Indian equities into 2026, driven by supportive government policies.
• Despite recent $1.6 billion outflows, Batra views rupee depreciation as 'inevitable and desirable' to offset US tariffs and boost exports.
• Projected 13-14% earnings growth for 2026-27 is expected to attract foreign capital, contrasting with global 'hope trade' in AI.
• JPMorgan remains underweight on Indian IT due to anaemic earnings growth (2-4%) and high valuations, questioning AI monetization.
• Top recommendations include the domestic demand theme, financials, materials, and consumer discretionary (food & beverage, autos, QSRs).

Why It Matters: JPMorgan remains bullish on Indian equities into 2026, citing strong policies and earnings growth despite rupee concerns.