'Domestic MFs shielded mkt from 20-30% slide'

GST reforms, income tax cuts could act as catalysts of economic activity and a subsequent market rally next year, says Jefferies

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Domestic mutual fund inflows have shielded Indian equities from a decline of 20-30% this year, amidst persistent selling by foreign portfolio investors (FPI), Jefferies’ global head of equity strategy, Christopher Wood, said.

Wood said that Indian shares have shown relative underperformance compared to Asian peers due to premium valuations. In an interview, he described the ongoing trend in the Indian market as a “healthy consolidation”, which may continue until 2025.