FY27 Market Outlook: Large Caps Set to Drive Returns
· Business · LiveMint, Economic Times
Financial markets in FY27 are expected to be earnings-driven, with large-cap stocks capturing investor attention following their underperformance in previous years. The shift comes as investors move away from small- and mid-caps towards sectors with stronger earnings growth. Q1FY27 results show a significant outperformance, with Nifty earnings growing by 18% YoY, driven by commodities, utilities, and global-facing sectors. Despite broader economic uncertainties, the market is showing confidence in earnings potential. However, geopolitical risks, particularly from a surge in crude prices, are cited as concerns by analysts like Pratik Gupta of Kotak Institutional Equities.
Why it matters
Investors are focusing on large-cap stocks for steady returns as economic indicators show confidence in corporate earnings. Commodity and utility sectors appear resilient despite global geopolitical tensions.
Read the original report — LiveMint
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