RBI Deputy Governor Predicts Renewed Equity Appeal as Economy Grows

Gupta noted that the equity market has yet to mirror the optimism seen in the bond space, partly because alternative narratives, such as AI‑driven growth stories in other economies, are currently more captivating. Nevertheless, she expects the real‑economy fundamentals to eventually lift Indian equities, making them more attractive for investors.

India’s stock market delivered an exceptional run from June 2022 to September 2024, but the momentum has slowed as other global markets experience rapid gains. Gupta stressed that once the durable growth engine of the Indian economy reasserts itself, equities are likely to regain their luster and draw renewed capital inflows.