India’s June Rally Seen Fading on Poor Earnings Outlook

  • Sell-side analysts still not positive despite June rally
  • State Street, HDFC are skeptical about Indian stocks’ upside
A bronze bull statue stands at the entrance of the BSE building in Mumbai.Photographer: Dhiraj Singh/Bloomberg
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Not everyone was convinced by India’s stock rally in June.

Hopes for an economic revival sent the S&P BSE Sensex Index up 7.7% in June, beating all other major country gauges in Asia and helping the benchmark recoup half of the losses from a pandemic-triggered selloff. Still, sell-side analysts remain cautious on the outlook for Indian companies, and strategists doubt there’s scope for further market gains.