Markets Shift Toward Earnings-Driven Stock Revival
Devarsh Vakil says Indian markets remain in consolidation entering late 2025, forecasting double-digit FY27 earnings growth with early revival signs in H2 FY26. He cites banking resilience—11% loan growth and 0.6% credit costs—and macro support from GST rationalisation and an RBI liquidity injection of ₹5.6 lakh crore, noting FIIs sold over $15 billion recently. He recommends disciplined, selective accumulation in banking, autos, consumer and quality mid/small-cap stocks.
Key Points
- 1Forecasts double-digit FY27 earnings growth with revival signs emerging in H2 FY26.
- 2Highlights GST rationalisation and RBI liquidity (₹5.6 lakh crore) as catalysts for demand and margins.
- 3Advises disciplined, selective accumulation in banks, autos, consumer sectors, and quality mid/small-cap stocks.
Scoring Rationale
Provides actionable sector recommendations and macro details, but relies on one analyst interview without novel empirical evidence.
Sources
Public references used for this report.
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