With the Indian equity market showing signs of stabilisation after a sharp correction, investors are now grappling with the next big question: where will the next leg of returns come from?
Divam Sharma, Co-Founder and Fund Manager at Green Portfolio, believes the market is entering a phase where earnings, rather than valuation re-rating, will be the key driver of returns. With the Nifty trading around its long-term valuation average, he expects low-to-mid teens returns over the next 2-3 years if earnings deliver.
