“Neutral on India from a regional perspective, despite better-than-expected Q1 FY27 earnings with 70% of firms beating or meeting expectations, led by mid and small caps. FY27 earnings estimates were upgraded by 50 bps to 14.3%, driven by financials. However, risks of downgrades loom in coming quarters due to elevated commodity prices, fading impact of GST cuts and inventory gains, and potential demand impact from further price hikes.”