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The latest Reuters poll of strategists downgraded the 2019 outlook for the Indian stocks for the first time this year amid upcoming general elections.

Key Findings:

“With state elections slated over coming months and a general election scheduled for May, Indian shares could remain subdued until the results become clear, according to a Nov 13-26 poll of 50 strategists.

Yet even by the middle of next year the BSE Sensex is forecast to have regained only about half its recent losses to trade at 37,000 from Tuesday’s close of 35,513.14.

While it is expected to rise to a new record high of 39,400 by end of next year, thanks to strong corporate earnings, the strategists lowered 2019 predictions in the latest poll.

The August poll had a median forecast of 41,200 as the record-high.

Over 60 percent of 26 common contributors from the previous poll cut end-2019 forecasts and two did not make any change. Only eight were more optimistic.

Over 80 percent of 45 equity strategists who answered an extra question said company earnings growth has not yet peaked in India, though there are signs the pace will slow over the next year.

Seven respondents also said company earnings growth has already peaked.”