JPMorgan has downgraded Indian equities to 'neutral', highlighting concerns over elevated valuations and rising earnings risks. The firm noted that while India's structural growth story remains strong, multiple factors have made other emerging markets more attractive on a risk/reward basis. Rajiv Batra, head of Asia at JPMorgan, indicated that India has historically traded at a 'scarcity premium' due to its high growth and policy stability. However, this premium is under pressure as trailing growth has been low in recent quarters. The brokerage has set a base-case target of 27,000 for the Nifty 50 index, with a bull-case of 30,000 and a bear-case of 20,500. JPMorgan has also reduced its earnings growth forecasts for 2026 and 2027 by 2-11%, citing risks from higher energy costs and supply disruptions. Additionally, the firm pointed out that India has limited representation in high-growth sectors such as artificial intelligence and semiconductors, which could hinder its ability to benefit from the global AI-driven capital expenditure cycle. Despite these challenges, JPMorgan remains optimistic about India's long-term fundamentals, supported by ongoing policy reforms and domestic demand.