Indian Market Remains Fairly Valued Despite Record Highs

As of November 12, 2025, the Nifty index is inching closer to the 26,000 mark, but the Indian market remains fairly valued, according to Jaiprakash Toshniwal, Fund Manager at LIC MF Asset Management. Toshniwal noted that valuations are still near the 10-year rolling average, suggesting that despite the record highs, the markets are not expensive.

The expert highlighted that earnings growth has picked up across the broader market, especially in mid and small-cap stocks. He expects lower double-digit earnings growth in FY27, with a stronger rebound expected next year, driven by a recovery in the banking, pharma, and IT sectors. Toshniwal stated that banking has stabilized with positive management commentary, pharma is reviving, and the IT sector could surprise on the upside with large deal wins.