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In this CIO Viewpoint, we delve deeper into corporate earnings for the June quarter 2024 to decipher earnings growth trends, dive into market valuations and also assess the status of domestic flows. We conclude by analysing a number of market indicators to gauge sentiment direction.

Key takeaways:

  • After 8 continuous years of positive returns, Indian equities have been a top performer in 2024 as well, with the MSCI India Index (up 18.5% YTD) sharply outperforming the MSCI EM Index (up 6.8% YTD).
  • This stellar performance has been powered by robust earnings growth, but even more by a massive P/E rerating led by rising domestic inflows.
  • Consequently, valuations have soared and with slowing earnings momentum, we may witness a period of consolidation and choppy returns. However, the longer-term story remains intact, particularly for the large-cap segment of the market, of favourable risk-adjusted gains.

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The CIO Viewpoint below is available to download. Please refer to the Important Information at the end of the memo for disclosures and risk warnings.

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Change of name: As part of Deutsche Bank’s Private Bank, the former International Private Bank also adopted this title on July 20, 2023.