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Motilal Oswal: Balanced Valuations Signal Strong Recovery for Indian Markets
According to a Motilal Oswal report, domestic stock markets are now in a stronger position than last year, as the corporate earnings cycle appears to be emerging from a low. The Nifty is currently trading at 21.4 times earnings, close to its long-term average of 20.8 times.
Compared to the previous year, the Indian stock market is now in a better position. With earnings emerging from a low, the earnings cycle seems to be in a recovery mode, a Motilal Oswal Financial Services report said. It said the second quarter of FY2026 results came in line with expectations as the severity of earnings cuts has decreased.
According to a Motilal Oswal report, the earnings cycle has bottomed out, and double-digit growth is expected in the future. Valuations are also considered balanced. The Nifty is currently trading at 21.4 times earnings, close to its long-term average of 20.8 times.
The brokerage believes that several steps taken by the government, along with the continued domestic reforms, will help revive corporate earnings. Furthermore, the resolution of the current tariff standoff will prove to be a significant external catalyst for the market.
