Indian stocks to gain only modestly in 2023 despite RBI rate hike pause: Poll

Indian equity strategists have scaled back their year-end outlook as a new bull run in India’s already-richly valued stock market is unlikely, according to a Reuters poll. The Sensex and Nifty 50 indexes were expected to gain 3.8% and 4.6%, respectively, from Tuesday’s close to end-2023, slightly downgraded from a February poll. Over 70% of analysts believe Indian stocks will trade in a narrow range for the next three months. While an end to the RBI’s modest rate-hiking cycle was positive, the high probability of a U.S. recession this year is likely to limit Indian stocks’ gains.