Equity markets' pain may worsen as economy, corporate profits slow

The nearly five-month-long slide in Indian equities could continue since the slowdown in corporate earnings growth and the exodus of foreign investors will persist as the world's fifth-largest economy sputters, fund managers and analysts said.

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Since hitting its all-time highs in late September, the benchmark Nifty 50 index has tumbled about 13 per cent, much steeperthan a roughly 2 per cent drop in both its Asian and global emerging market peers.

The slide was triggered by a sharp slowdown in profit growth in India's top companies. The earnings growth of the Nifty 50 companies was 5 per cent in the October-December quarter, a third straight quarter of single-digit increases after two years of double-digit jumps, according to brokerage data.