The Indian stock market may be entering the early stages of a broader rally, supported by a recovery in corporate earnings and the return of foreign portfolio inflows, according to Seshadri Sen, Head of Research and Strategist at Emkay Global Financial Services.
In an interview, Sen said the earnings downgrade cycle has largely ended, while the rebound in information technology stocks is only midway through a valuation-led rerating. For the next 12–18 months, he prefers consumption and industrial stocks, sees attractive opportunities in NBFCs and smaller private banks, and recommends a balanced market-cap allocation with a modest smallcap bias.
