New Delhi, Aug. 11 -- The resilience of the Indian equity market masks a key divergence: a strong domestic liquidity floor obscuring moderating corporate earnings.

The market appears stable due to strong SIP inflows. However, this liquidity creates a deceptive equilibrium, hiding the gap between earnings realities and premium valuations.

The era of effortless gains is over. Local earnings growth has slowed, global cushions have worn thin, and the margin of safety is severely compressed.

We operate in a global environment where the US 10-year Treasury yield hovers stubbornly near 4.64%.

Driven by Middle East frictions and a hawkish Federal Reserve, near-term monetary easing is completely priced out.

With the reserve currency's risk-fr...