Axis AMC CIO: IPO glut biggest market headwind; strong earnings growth seen

• Axis AMC CIO Ashish Gupta states an "unrelenting supply" of new equity shares, including nearly 100 IPOs this year, is the biggest market headwind for Indian markets.
• Total equity supply, including IPOs and stake sales, is estimated to exceed ₹5.5 lakh crore this year, significantly outweighing FII outflows.
• This supply glut pressures secondary market valuations as moderated IPO multiples create arbitrage opportunities.
• External factors like potential US tariff rollbacks and a widening trade deficit impacting the Indian rupee are also noted.
• Gupta forecasts strong, broad-based earnings growth of 15-16% for the next fiscal year, driven by sectors like consumer, cement, auto, and financials.

Why It Matters: IPO glut is a key market headwind, but strong earnings growth offers future potential.