Improved margins, stable demand conditions and supportive commodity prices are likely to sustain earnings growth through the remainder of the fiscal year, he said. “We expect H2FY26 earnings to strengthen amid rate-cut transmission, festival season consumption, rural demand normalisation and sustained public capex,” Joseph said. On valuations, market experts said earnings growth amid range-bound equity markets has resulted in a correction in valuation multiples, particularly for large-cap stocks. “With the market being in a range and earnings having seen an expansion, there has been a valuation correction. Large-cap earnings have grown at around 10 per cent, resulting in a valuation correction of that order for large caps,” Agrawal said.

Source: The Telegraph January 05, 2026 02:57 UTC