Indian equity market near record highs! Here are 5 tailwinds & headwinds

Indian equity markets have surged since the start of FY 2023-24, driven by tailwinds including strong FII inflows, domestic inflows, FDI and an expected rebound in corporate earnings. However, headwinds such as the impact of El Nino on domestic consumption, the impact of slowing global economy on Indian exports, and rising risk aversion among policymakers could derail the market’s growth. The lack of progress in privatizing PSBs and PSUs remains a shortcoming of the current government.