Kotak Neo believes Indian equities are entering Samvat 2083 with a more constructive investment outlook, supported by improving corporate earnings, reasonable valuations and resilient domestic fundamentals, even as global uncertainties continue to weigh on market sentiment.
The brokerage expects the Nifty50 to deliver earnings growth of around 18 percent in FY27, followed by 13 percent in FY28. This comes after corporate earnings momentum strengthened in the first quarter of FY27, with Nifty50 companies reporting their highest year-on-year earnings growth in 11 quarters.
Valuations have also become more comfortable following the recent market correction. The Nifty50 is currently trading at 18.7 times FY27 estimated earnings and 16.5 times FY28 earnings, creating a more favourable entry point for long-term investors, according to Kotak Neo.
Looking back at Samvat 2082, Indian equities went through a period of correction and recalibration, with sustained foreign investor selling, higher crude oil prices amid the Middle East conflict and rising US bond yields weighing on benchmark indices. However, strong domestic retail participation and mutual fund SIP inflows helped absorb a significant portion of foreign outflows.
Kotak Neo believes India's underlying economic fundamentals remain intact, supported by robust domestic demand, resilient corporate balance sheets, infrastructure spending and government initiatives to strengthen domestic manufacturing. While GDP growth moderated from 7.7 percent in FY26, the brokerage expects the economy to grow 7.2 percent in FY27 and 6.5 percent in FY28.