"The outlook for Indian equities is turning more constructive after the recent correction, which has improved valuations and the risk-reward," said Hemant Kanawala, Senior Executive Vice President and Head of Equities at Kotak Life Insurance, in an interview with Moneycontrol.
He believes that India could see a meaningful recovery in foreign inflows if earnings momentum improves, macroeconomic stability continues and the country offers a more competitive tax framework.
Among sectors, Kanawala believes that a fair degree of the near-term headwinds facing the Indian IT sector is already reflected in valuations. However, he cautioned that calling 2027 a game changer for the sector may be premature.
Is the Indian market outlook looking promising at this stage?
The outlook for Indian equities is turning more constructive after the recent correction, which has improved valuations and the risk-reward. The Nifty is trading below its long-term average forward valuation, while domestic institutional flows and underlying economic growth remain supportive.