Nomura on India: From IT recovery to US tariff boosts, why party isn’t over yet- Bets on 14-16% earnings growth

The Indian equity market has continued to lag global peers so far this year. The Nifty is down about 3% year-to-date in dollar terms. Nomura, however, believes the risk-reward for Indian equities remains favourable. On the earnings front, the brokerage sees low risk to near-term profit expectations, even after India Inc took a hit from labour code-related provisions in Q3FY26.

Here is why Nomura expects corporate profits to grow at a healthy pace over the next two years, with earnings seen rising 16% in FY27 and 14% in FY28.