Bernstein Downgrades India Stock Market to 'Neutral'; Forecasts 7.5% Return by 2026

• Global brokerage Bernstein downgrades Indian stock market rating to 'Neutral' from 'Positive'.
• India's market is deemed one of the most expensive globally, trading at over 20x forward P/E vs. 15.1x global average.
• Bernstein forecasts a limited 7.5% return for the Nifty by 2026 due to high valuations and weak earnings growth.
• The Nifty target is set at 28,100 by FY28, based on 13.5% earnings CAGR and 19x multiple.
• Investors are advised to prioritize valuation discipline and stock selection given the current market scenario.

Why It Matters: Bernstein warns of limited upside for Indian stocks, downgrading to 'Neutral' due to high valuations.