Indian markets are looking good, Nifty 50 to see strong earnings growth for next 2-3 years: Aditya Birla Capital.
The report said Nifty 50 EPS to grow at 13% CAGR over FY25-27.
It said, "We anticipate NIFTY50 EPS to grow at a CAGR of approx. 13 per cent over FY25-27. At its current valuation of 17.3x FY26 PE, NIFTY50 is trading at approximately 10 per cent discount to its 10Y historical average, presenting an attractive opportunity."
Also, it is trading at 17.3x FY26 earnings which is 10% lower than 10Y historical average. So Indian markets are still reasonable despite recent moves.
The report said India’s growth is stable with stable government and strong corporate balance sheet. Fiscal deficit is coming down, so economic stability is high.
So Indian markets should get higher multiple than other global markets.
Budget FY26 focuses on agriculture, employment, skill development, exports and MSMEs.
A strategic import tariff adjustment has been done to counter potential trade policies from US, especially under a Trump administration.
One of the big positives of the budget is consumption push. Government has revised direct tax slabs which will increase disposable income and support urban demand. Rural development initiatives and monsoon expectations will further support rural consumption.
Overall it is neutral to positive, 7/10. Challenges are there but long term story of Indian markets is intact, good to invest.
