India’s nominal GDP growth is expected to accelerate sharply to 11.5%-12% in FY27 from about 9% a year earlier, setting the stage for stronger corporate earnings. But that macro improvement may not translate into a broad-based stock market rally.
Jefferies expects corporate earnings growth to rise towards 14% in FY27, following 10% growth for MSCI India in FY26. Earnings momentum has already improved, with companies excluding oil and gas and metals recording 18% year-on-year earnings growth in the June 2026 quarter, the strongest pace in 10 quarters.