India's average cost of equity remains stable at 14.2% amid global challenges, with E-commerce, real estate, and IT/ITES sectors having the highest costs of capital.
India's average cost of equity remains stable at 14.2% due to strong resilience, up 40 basis points since 2021, according to EY's survey. The equity market risk premium has reduced, reflecting market maturity and reduced volatility. Despite global challenges, India's macroeconomic fundamentals maintain a stable cost of equity. E-commerce, real estate, and IT/ITES sectors have the highest costs of capital due to their risk profiles, while power, chemicals, and Media & Entertainment sectors have lower costs.
July 21, 2024
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