India Equity Strategy: July 2026 wrap: Second consecutive month of outperformance, despite global cross-currents

Research evidence excerpt

India Equity Strategy: July 2026 wrap: Second consecutive month of outperformance, despite global cross-currents

J P M O R G A N Global Markets Strategy

31 July 2026

India Equity Strategy

July 2026 wrap: Second consecutive month of

outperformance, despite global cross-currents

• MSCI India ($ index) rose 1.5% in July, outperforming MSCI APxJ/EM Equity Macro Research

AC indices by 3.1%/3.9%. Performance was driven by a rotation into India due Rajiv Batra

to the global AI de-risking phase, pockets of better-than-feared earnings (65) 6882-8151

delivery and upbeat economic indicators (see below). However, the drag on rajiv.j.batra@jpmorgan.com

performance came from uncertainty around Fed communication, which kept J.P. Morgan Securities Singapore Private Limited

global risk appetite choppy, crude staying elevated and volatile (with Middle Rushit Mehta AC

East tensions flaring up again), and INR staying near the weaker end, which (9122) 6157-3711

rushit.mehta@jpmchase.com

kept imported-inflation and margin concerns alive. Large-caps rose 2.1%, J.P. Morgan India Private Limited, J.P. Morgan

outperforming small-/mid-caps by 1.0%/1.2%. Nifty 50 rose 2.2% and ended Tower, Santacruz(E), Mumbai - 400098, SEBI

Registration: INH000001873, (91-22) 6157-3000.

July at 24,384.

• MSCI India (INR) was up 2.3% in July. IT (15.3%), Real Estate (+8.3%) and

Discretionary (+7.5%) were the top-performing sectors, while Industrials (- Figure 2: MSCI India ($) relative to EM and

3.8%) and Utilities (-1.9%) were the worst-performing sectors. See pages 8-13 APxJ

for more sector updates. The INR depreciated 0.8% in July, ending July at 110

95.39/USD. 105100

85• FIIs return in July. After four consecutive months of selling, FIIs bought 90

Indian equities worth $2.3bn (selling of $3.0bn in June).