Indian equity markets could be headed for a strong phase, with Q3FY26 earnings season expected to be the strongest in the last two years, according to market expert Shailendra Kumar. He believes improving fundamentals and fairer valuations are setting the stage for a sustained market uptrend.
Kumar noted that equity valuations have now normalized to more reasonable levels, easing concerns that previously weighed on investor sentiment. At the same time, corporate earnings are showing early signs of recovery, driven by better demand visibility, margin stability, and improving balance sheets across sectors.
Based on these factors, Kumar expects the benchmark Nifty index to rally 15–20% in 2026, supported by earnings growth rather than speculative expansion. He added that a stronger earnings cycle in Q3FY26 could act as a key trigger for renewed institutional and retail participation in Indian equities.
The outlook for Indian markets remains constructive, with improving earnings momentum and normalized valuations creating a favourable environment for long-term investors as the economy moves into the next growth phase.
