India’s 7.8% growth masks equity market slowdown as tariffs weigh on earnings

India’s 7.8% GDP growth masks equity market slowdown as tariffs weigh on earnings [https://invezz.com/wp-content/uploads/2025/09/20250901_091754_yw27v.png] India recorded one of the fastest economic expansions globally in the April–June quarter, with real GDP climbing 7.8%. But this strong growth is struggling to lift equity markets, as nominal growth, corporate earnings, and foreign investor confidence show signs of strain. The divergence is driven by slowing pricing power, weaker credit growth, and new US tariffs that threaten to cut into export revenues. While the economy’s headline numbers remain robust, the pressure on corporate performance highlights the growing gap between India’s macroeconomic momentum and the realities facing listed companies. CORPORATE EARNINGS HIT A SEVEN-QUARTER LOW AT 3.4% India’s nominal GDP growth slipped to 8.8% in April–June, down from 10.8% in the previous quarter, pointing to weaker inflationary support. This slowdown was mirrored in company earnings, with the top 3,000 listed firms reporting revenue growth of just 3.4% year-on-year, the weakest pace in seven quarters. The same measure had stood at 5.1% in January–March and 6.8% a year earlier, according to ICICI Bank Global Market Research. Analysts…