Summaries by Soumya Sarkar

Indian markets dangerously underestimate climate risks, reacting instantly to short-term events but ignoring long-term environmental threats. Despite India's high climate exposure—escalating heatwaves, floods, and water stress—markets fail to price these into asset valuations. This unsustainable disconnect means vulnerable assets attract capital equally. Markets treat climate shocks as temporary disruptions, not structural financial risks affecting earnings and loan books. This oversight risks abrupt, painful repricing. Investors must acknowledge intensifying physical and financial vulnerabilities before severe, inevitable market adjustments occur.