India Sell-Off: No 'No-Brainer' Bargains Despite 15% Market Drop, Says Bernstein

• Bernstein's report indicates that the 15% Indian market correction did not create obvious 'no-brainer cheap stocks' as expected.
• Analysis of 94 large- and mid-cap companies (excluding financials) revealed a significant drop in expected EBITDA growth from 35% to 19% for FY25-FY27.
• The market shows a 'good base year (FY25) followed by a bad year (FY26)' pattern, with earnings downgrades continuing.
• The market has become polarized, with the middle ground of balanced short-term and long-term expectations disappearing; many stocks now have low near-term EBITDA but high long-term hopes.
• Consumer discretionary was hit hardest, while cement and energy largely escaped downgrades; Bernstein suggests a diversified portfolio with risk from impacted sectors and a tilt towards financials, telecom, power, and IT.