Following an eight-week losing streak in the Nifty, its first such run since 2001, domestic brokerage PL Capital remains cautious on the near-term market outlook. The brokerage does not expect a V-shaped recovery and does not rule out a further decline before the market enters a consolidation phase.
PL Capital has cut its Nifty EPS estimates by 1.3% for FY27 and 0.5% for FY28, while projecting earnings growth of 16.1% and 14.9%. The brokerage said the Nifty is currently trading at 15.5 times its one-year forward earnings, a 19.3% discount to its 15-year average price-to-earnings multiple of 19.2 times.
