New Delhi, April 24 -- J.P.Morgan downgraded Indian equities to "neutral" from "overweight," citing elevated valuations compared to emerging market peers and pressure on earnings from energy supply shocks linked to the Iran war, a day after HSBC lowered its rating.

Surging crude prices could stoke inflation and growth risks for the country, squeeze consumption and weigh on near-term corporate margins, with a weakening rupee adding to the pressure, the brokerage said in a note on Friday.

Earlier this month, J.P.Morgan cut FY2027 earnings estimates by 2%-10% across domestic sectors such as energy, consumer, auto and financials. It also reduced MSCI India earnings growth forecasts for 2026 and 2027 by 2 percentage points and 1 percentage p...