More Stories

Informist, Tuesday, Nov. 18, 2025

MUMBAI – Equity markets will be rangebound until earnings growth picks up, with the Nifty 50 index likely moving 20-22 times one-year forward earnings, said Maulik Patel, head of research at Equirus Securities Pvt. Ltd., at an event in Mumbai. He said downgrades in earnings estimate are largely over and upgrades may begin soon.

He does not expect any major fall in the market due to strong flows from domestic institutional investors. Outflows from foreign institutional investors are likely if optimism around artificial intelligence-related companies continues to drive other global markets higher. India does not have many opportunities related to AI, which has affected foreign flows this year, but India can benefit if AI-led rise in the other markets slows down, he said.

Patel said stock valuations have come off peaks but remain elevated in several parts of the market, especially in small-caps and mid-caps. He prefers large-caps over small-caps due to lower valuations.

Consumption in the coming months is likely to improve after the government cut goods and services tax, said Chanchal Agarwal, chief investment officer at Equirus Family Office, on the sidelines of the event. She pointed out that it would be worrisome if consumption does not improve by the end of this financial year even after the tax cuts and other benefits announced by the government.

IPOs AN EXIT OPPORTUNITY

Officials of the investment banking division pointed out that private equity funds have been using initial public offerings as an exit. This is likely to continue as $165 billion of private equity investments in the last five years may look for exit opportunities in the future, Bhavesh Shah, managing director and head of investment banking at Equirus Capital, said at the event.

Shah said companies may raise up to $20 billion in 2026 and the same could be much higher if the likes of Reliance Jio Infocomm lists. He expects more IPOs from companies in tier-2 and tier-3 cities of India.

Equirus Capital's Sandeep Gogia, who manages the technology sector for the firm, expects companies from this sector to raise $6 billion in 2026 from the capital market. The funds raised are expected to be largely for mergers and acquisitions, he said.

Gogia said US tariffs and visa issues have accelerated the development of global capability centres in India. He expects Indian companies to find some opportunities in West Asia, where several countries are focusing on capital expenditure to improve technology.  End

Reported by Anshul Choudhary

Edited by Ashish Shirke

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.