Portfolio managers said India’s earnings cycle has turned upward after two years of subdued corporate performance, encouraging fresh domestic allocation. Fund houses cite improving revenue visibility across financials, industrials, and select consumer names.
Margin recovery depends on stable input costs and pricing power in competitive categories. Analysts track consensus estimate revisions as a leading indicator for index returns.
Systematic investment plan inflows continue supporting large-cap and mid-cap benchmarks. Foreign investors may re-engage if macro risks ease and currency stabilizes.
Market outlook commentary remains constructive but emphasizes sector differentiation over blanket optimism. Earnings beats in banking and consumption could anchor index performance through upcoming result seasons.
Fund managers describe the current phase as an early earnings recovery that warrants increased domestic equity exposure relative to recent years.
Created by Ayen Stabel.
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Sources:
https://www.business-standard.com/article/economy-policy/