In India’s stock market, investors are eyeing a new wave of growth. Market analysts say the coming year could bring a sharp earnings‑driven rebound, as the country’s equity scene shifts into a positive trajectory.
On Monday, the Indian capital markets community noted that the new Vikram Samvat year, starting on 21 October, signals a fresh start for investors. “We’re talking about another chapter of compounding for India’s businesses,” said Amisha Vora, chairperson and managing director of PL Capital. “Corporate earnings are picking up and the economy is expanding from the bottom up.”
Vora added that the last year tested buyers’ patience. “India had solid domestic fundamentals yet fell behind global peers,” she said. “The optimism that we’re seeing now is a welcome shift.”
Why the optimism? Vora highlighted a mix of structural reforms, the rollout of GST 2.0, income‑tax relief, and an overall supportive policy environment. These moves have helped ease liquidity conditions and set the stage for a 6.8 % GDP growth in fiscal year 2026, among the fastest in the world.
Equity valuations look reasonable, and analysts say earnings downgrades have largely bottomed out. Domestic money continues to pour into Indian markets, even as foreign investors remain cautious. That balance gives the market a favorable backdrop for outperformance in the new year.
Across the board, analysts predict strong earnings growth for the top 50 Nifty companies. “We expect an 8 % rise in FY 2026 and a 16 % jump in FY 2027,” the group said. Motilal Oswal Financial Services remains bullish on key sectors such as banking, capital markets, consumer goods, manufacturing, and digital services.
While global challenges like trade friction and slow global growth linger, India’s macro stability, ample liquidity and supportive policies make it a standout in the world economy. Investors will be watching how these factors unfold as the new Vikram Samvat year begins.
Source: ianslive
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