Indian Market Set for Double-Digit Earnings Growth, Says LIC Fund Manager
Indian market poised for double-digit earnings growth over next 2 years: Dikshit Mittal
The Economic Times
Image: The Economic Times
Dikshit Mittal, Senior Fund Manager at LIC Mutual Fund, predicts that India's market could see double-digit earnings growth through FY27 and FY28, driven by recovery in banking and consumer sectors. Despite a stagnant Nifty index, mid- and small-cap segments show strong earnings momentum, suggesting a favorable investment outlook.
- 01Dikshit Mittal forecasts double-digit earnings growth for FY27 and FY28.
- 02The Nifty index's stagnation is due to large banking and IT companies' cyclical slowdowns.
- 03Mid- and small-cap segments are showing robust earnings momentum.
- 04Current Nifty price-to-earnings multiple is below its long-term average, presenting a buying opportunity.
- 05Geopolitical tensions may resolve soon, potentially catalyzing earnings recovery.
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Dikshit Mittal, Senior Fund Manager at LIC Mutual Fund, believes the Indian market is on the verge of significant earnings growth, projecting double-digit growth through FY27 and FY28. He notes that the Nifty index has been relatively stagnant due to a concentration in large banking and IT firms, which are experiencing cyclical slowdowns. However, mid- and small-cap segments are thriving, showing 6–7% growth in the ongoing Q4 FY25 earnings season, aligning with analyst expectations. Mittal emphasizes that the Nifty's current price-to-earnings multiple is below its long-term average, making it an attractive entry point for investors. He anticipates that a resolution to current geopolitical tensions could further enhance earnings visibility as early as Q2 FY26. Overall, Mittal encourages investors to adopt a long-term perspective, indicating a favorable market outlook.
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If earnings growth materializes, it could lead to improved investment opportunities and potentially higher returns for investors in the Indian market.
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