By:-  Rahul Singh, CIO-Equities, Tata Asset Management

“Indian markets have entered a constructive phase, in line with our earlier expectations. Stable FY26 earnings and an anticipated recovery to mid-teen profit growth in FY27 are strengthening the market outlook. This improvement is supported by the prospects of interest rate cuts in India and the US, which are providing valuation comfort with the Nifty 50 trading at nearly 21x forward earnings.

We are also seeing early signs of a revival in consumption and credit growth, aided by the sustained impact of GST cuts. Corporate profit estimates are beginning to recover, and with India’s valuation premium to global markets moderating, the investment case for India over the next 12–15 months looks more compelling. In this environment, we continue to prefer flexi-cap funds within diversified equities and multi-asset strategies that offer commodity exposure, along with thematic opportunities in banking and consumer-driven sectors.”