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Robust Earnings Visibility Boosts India's Market Outlook for Diwali 2025
15 Oct
Summary
- Healthy credit growth, manufacturing rebound, and infrastructure spending drive broad-based profitability
- Market valuations reasonable at 19-20 times one-year forward Nifty earnings
- Liquidity and sentiment expected to remain positive, backed by domestic savings and resilient banking
As of October 15, 2025, India's earnings visibility for the current Samvat 2082 remains strong, supported by a healthy credit growth, a manufacturing rebound, and increased infrastructure spending. These factors have driven broad-based profitability, with market valuations at reasonable levels of around 19-20 times one-year forward Nifty earnings.
While some consolidation in the mid and small-cap segments is expected after their recent gains, the overall liquidity and sentiment are anticipated to remain positive. This is backed by domestic savings, government spending, and a resilient banking system. While short-term volatility from geopolitical events and commodity swings is possible, India's robust domestic growth, policy stability, and earnings strength support a constructive medium-term outlook.
Nuvama, a leading investment firm, has identified 5 stocks that it believes can deliver meaningful returns this Diwali season. These recommendations are expected to capitalize on the country's favorable economic conditions and market dynamics.
