For Indian equity market, calendar year 2023 so far has been a bumpy ride. First, the rout in Adani Group stocks dampened investor sentiment. Second, US Federal Reserve chairman Jerome Powell's latest indication that terminal rate could be higher than what was anticipated, has made global equity investors nervous. This could mean more pain for equity markets, including India. An analysis by Motilal Oswal Financial Services Ltd showed that India's share in global market capitalisation was at 3% in February - above its historical average of 2. 5% but the lowest since April 2022. TRENDING STORIES See All Premium Diplomacy in times of cricket: A Motera Thursday with M . . . Premium With 9% dividend yield in FY23, this stock beats PPF, E . . . Premium CRPF women ‘daredevils’ embark on bike rally from Delhi . . . Premium ADIA nears buying $500 million stake in Lenskart, sources "Over the last 12 months, while global market capitalisation declined 10. 5% ($11. 9 trillion), the same for India declined 6. 4%. Barring Russia and Indonesia, all key global markets witnessed a decline in market capitalisation during the last 12 months," said the Motilal Oswal report. After a 2. 4% decline in January, India's benchmark index Nifty 50, fell another 2% sequentially in February. Furthermore, the MSCI India index underperformed global and Asian peers and was among the laggards. In local currency terms, equity markets of China, Japan, Russia, Taiwan and the UK closed February with positive returns, as per the Motilal Oswal analysis. India Inc's earnings performance in Q3FY23 was a mixed bag hurt by weak demand environment and macro headwinds. Subdued performance of metals, cement and oil&gas companies were a drag on overall earnings. On the other hand, BFSI and automobile companies did well. "Slowdown in consumption is a material concern if trends don’t reverse immediately," added the Motilal Oswal report. Urban discretionary consumption in some categories has been impacted by elevated inflation. The revival in rural demand has not been broad based. Further, there may be risk of El Nino this year, which tends to impact crop yields and has in the past also led to a drought. MINT PREMIUM See All Premium Top performing midcap stocks of 2023 so far Premium When Parag Parikh's wife stepped up to help him become . . . Premium This Specialty Chemical Company is Taking a Leap in Lit . . . Premium Money lessons this shark learnt from her mother Meanwhile, Indian equities have been trading at one-year forward price-to-earnings multiple of around 20 times. While the valuation of Indian equities has moderated from recent high, it continues to trade at a premium to Asian equities. For this valuation multiple to justify, it is crucial for earnings to catch-up. Know your inner investor Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach. Take the test Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. More Less OPEN IN APP.