In the AI-led markets of recent years, companies with distant profit potential have been favored. But higher interest rates could change the equation and create a new advantage for value stocks, whose businesses tend to have more visible cash flows in the shorter term.
India’s economy and financial markets continue to evolve. Government incentives and strategic investment are expanding domestic manufacturing, while rising incomes are shifting spending “from essentials to extras” and “from basic to premium”. Meanwhile, easier access for foreign investors and growing domestic participation are supporting the development of India’s financial markets.
In September, global bond markets came under pressure amid inflation concerns and hawkish shifts by central banks, while equity markets remained relatively calm, supported by strong economic data and earnings, alongside renewed optimism around AI.