News: Nomura has joined UBS and Goldman Sachs in downgrading Indian equities due to the ongoing US-Iran conflict and its potential impact on global energy prices. The brokerage lowered its Nifty 50 target to 24,500 by December 2026, from a previous target of 29,300. Key concerns include sustained high crude oil prices (India imports 90% of its crude), potential slowdown in domestic investor participation, and the uncertain impact of AI on India's demographic advantages and consumption. Nomura recommends investors reduce their stakes in Indian equities and explore opportunities in the Korean and MSCI China markets, citing attractive valuations in Korea and an 'overweight' stance on China.
AI Analysis: The downgrades from multiple global brokerages signal increasing investor risk aversion towards Indian markets, potentially leading to capital outflows and hindering economic growth. The concern over AI's impact suggests a reassessment of long-term growth narratives based on India's demographic dividend.
