The round of results for the July-September quarter is now almost in its final stage. The results of many companies have been weak amid concerns about consumption and demand. Now Jefferies India has cut the earnings estimates of about two-thirds of the companies included in its coverage for the financial year 2025. This is being said to be the biggest downgrade ratio so far after the year 2020.

Jefferies India said in a note that due to cyclical slowdown in the Indian economy, the estimates of the results of these companies have had to be reduced. There are a total of 121 companies in the coverage of the brokerage firm, out of which the EPS estimates of about 63% of the companies for the financial year 2025 have been cut. These companies have released the results for the September quarter. The brokerage firm estimates that the top 50 companies of Nifty will see only 10% growth in earnings during the current financial year.

The biggest weakness in the market after March 2020 is that
the Indian stock market is under pressure amid the declining interest of foreign investors and concerns about earnings growth. This is also likely to put pressure on the Indian equity outlook in the short term. During the month of October, global funds have sold about $ 11 billion in India. Nifty has seen a decline of 6.2% last month. This is the biggest decline in the Indian market since March 2020. However, this year the Nifty is still up about 11%.

Trump's victory, the market entangled in the game of China and consumption
It is also believed that Donald Trump's victory has created uncertainty about China's outlook and this is putting pressure on the Asian equity market. China has once again announced a relief package on Friday. Market experts say that the selling by foreign investors in the Indian market will not be that big, but they will still remain cautious. The results of automotive and FMCG companies have shown a slowdown in the consumption trend. This slowdown is especially in urban areas, which is now becoming a concern. CNBC-TV18 said in an analysis report that out of NSE 200 companies, 143 companies have released their results. In this, 86 companies have seen a reduction in the EPS estimate for the financial year 2025. The names of steel, energy and power companies are at the top of this list. In the last month, Goldman Sachs has also changed its view on India from Overweight to Neutral. They are concerned about India's economic growth and high valuation. Jefferies now has a cautious view on India Jefferies says that it is optimistic about the Indian equity market, but the cautious view is also intact. They say that a balance is now being formed between supply and domestic demand. In recent months, equity supply has increased by $ 7 billion per month. So far this year, this figure is at $ 60 billion. However, this brokerage firm is also bullish on India in the long term. They say that by 2030, India's equity market capitalization can reach $ 10 trillion. Growth opportunities are visible in India, so valuations are looking expensive. The domestic stock market has gained strength due to the increasing participation of retail investors. In which sectors are valuations the most worrying?