India's earnings recovery has begun to broaden across sectors, but the market may not yet be fully pricing in the upcycle, according to Hemant Kanawala, senior executive vice president and head of equity at Kotak Life Insurance.
After two weak years, relative valuations have moved closer to multi-year lows while large-caps are trading at about 19.7 times estimated FY27 earnings, Kanawala said. With Nifty profits expected to grow 17% to 18% in FY27 and Q1 earnings rising 18%, well above expectations, the setup offers a more favourable risk-reward equation, provided private capex revives and external risks remain contained.
