Nomura has expressed a positive outlook on Indian equities, despite short-term macroeconomic challenges. The brokerage firm believes that India has significant potential due to factors such as the growing adoption of electric vehicles and unique market drivers.

Nomura acknowledges a temporary slowdown in India but emphasizes that this does not diminish the long-term attractiveness of Indian stocks. The market is supported by a strong "China+1" narrative, underweight positions in emerging market funds, and the benefits of a K-shaped economic recovery. Analysts predict strong earnings growth for Indian companies in 2025, despite some expected downgrades. Furthermore, domestic equity flows have remained stable, providing additional support during recent market pullbacks.