Stock Market Strategy: Welcome Tailwinds For Indian Equities, Says Motilal Oswal — Read Report
Given a favorable base effect, markets are likely to respond positively, especially as multiple government measures are expected to improve overall growth dynamics and sentiments in H2 FY26.
On a YoY basis, Indian benchmark indices have remained largely flat and underperformed several key markets in CY25TD. Nifty is trading at a reasonable 12-month forward P/E of 20.8x (in line with its past 10-year average) and could expand from here, given the improving earnings trajectory.
NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Indian markets have been lackluster over the past year (Nifty flat YoY) and underperformed several global peers. This is primarily attributed to earnings weakness (with Nifty/our PAT growing at an anemic 4-5% YoY, witnessing sharp earnings cuts), compounded further by a series of geopolitical and macro headwinds.
In response, the RBI and the government have adopted a whateverit-takes approach to revive domestic consumption and stimulate growth.
While Indian markets initially responded to regulatory efforts (with Nifty rising ~17% between Apr’25 and Jun’25), they have turned cautious again (down 4% since Jun’25 ), reflecting concerns over punitive US tariff announcements, geopolitical altercations, a volte-face in the Indo-US relationship, reversal of FII flows, etc.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
