Nifty earnings forecasts have stabilised after a year of steady downgrades, and the trajectory for earnings growth is now improving, said Amish Shah, Head of India Research at BofA Global Research. He said consensus is currently building in “only 8% earnings growth for the fiscal year 2025-26 (FY26) and then 15%,” and the gap between BofA’s estimates and the street has “meaningfully shrunk.”

Shah said 2025-26 earnings have been cut by 10% and fiscal year 2026-27 (FY27) by 7%, but the phase of reductions now appears to be over. “Earnings cuts are now behind, which is always good news for the market,” he said. He added that Nifty 50 earnings growth is set to pick up: 2024-25 (FY25) saw 5.5%, the first half of 2025-26 has reached 8.6%, the second half could be near 9%, and 2026-27 may rise t

See Full Page