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Indian Markets Past the Worst? Macquarie's Sandeep Bhatia Analyzes Key Risks & Opportunities
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CNBC TV18•01-10-2026, 12:55
Indian Markets Past the Worst? Macquarie's Sandeep Bhatia Analyzes Key Risks & Opportunities
- •Sandeep Bhatia of Macquarie Capital believes Indian markets are past the worst of recent negative news and market pressure, now at the lower end of their range.
- •Key risks remain oil prices and US tariffs, while interest rates in India and the US are headwinds; India has not yet benefited from hardware and AI themes.
- •Bhatia expects positive earnings surprises in Q2FY27, particularly in banking, with margins expanding and stocks re-rating over the next two years.
- •He sees large-cap valuations as more reasonable but is cautious on small- and mid-cap valuations, highlighting the growing financialization of Indian savings as a major opportunity.
- •Beyond financials, Bhatia anticipates positive surprises in consumer durables (autos) and the power/energy sector, but remains cautious on IT due to AI uncertainty and regulatory changes in insurance.
Key Questions Answered
Yes, according to Sandeep Bhatia of Macquarie Capital, Indian markets are now at the lower end of their range and have likely moved past the worst of the recent negative news and market pressure.
Macquarie Capital notes that despite moving past the worst of negative news, the market outlook remains sensitive to two primary risks: oil prices and US tariffs.
Macquarie expects banking earnings to improve and margins to expand over the next two years, while also highlighting consumer-durable auto companies and power and energy infrastructure like Clean Max Enviro Energy Solutions and Hitachi Energy India.
