π Indian earnings recovery not fully priced in yet
Earnings recovery across sectors in India has started broadening, but the market isn't fully reflecting this upcycle yet. Hemant Kanawala of Kotak Life noted that large-caps trade at around 19.7 times estimated FY27 earnings, with Nifty profits expected to rise 17% to 18% in FY27. Key triggers include a stable West Asia conflict end, softer crude, and revival of private capex. Risks involve prolonged conflict and weak monsoon, while Q1 profits grew 17.7% versus ~10% expected. Investors should selectively favor financials and quality compounders amid market dispersion.