Macquarie's Bhatia: Expect 12% India Equity Returns, IPOs Frothy

• Macquarie's Sandeep Bhatia projects moderate 12% returns for Indian equities this year, driven by domestic investors and improved earnings.
• Foreign investor inflows are expected to remain low in H1, with global investors preferring China and Taiwan due to easing US rates and AI cycle.
• The IPO market is deemed "frothy" with stretched valuations, posing a key risk for investors.
• India's political stability and higher growth stand out, with the Union Budget likely to focus on capex and manufacturing.
• Bhatia is constructive on financials (large banks) and recommends selective large-cap names like HDFC Bank and Reliance Industries.

Why It Matters: Set realistic 12% return expectations for Indian equities, be selective, and watch IPO risks.