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Indian Markets Under Pressure Despite Strong Mid-Cap Earnings: Nilesh Shah Explains
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CNBC TV18•28-09-2026, 16:22
Indian Markets Under Pressure Despite Strong Mid-Cap Earnings: Nilesh Shah Explains
- •Indian markets face pressure from higher oil prices, US interest rates, and continuous IPO supply, yet the correction is not uniform across segments.
- •Nifty 50 is down 13% from its September 2024 high, while mid-caps are only down 2%, largely due to superior mid-cap earnings growth.
- •Mid-cap earnings grew over 35% in Q1 FY27, significantly outpacing large-cap earnings growth of about 12% in the same period.
- •Nilesh Shah identifies risks including US dollar and interest rate movements, potential reversal in AI trade, oil price volatility, and domestic concerns like monsoon deficits.
- •Shah suggests policy measures such as improving India's global perception, balancing STT and capital gains, and addressing high-frequency trading's impact on retail investors.
Key Questions Answered
Indian markets are facing pressure due to higher oil prices, US interest rates remaining above the 5% trajectory, and a steady supply of IPOs outpacing market demand.
Mid-cap earnings grew by over 35% in the first quarter of FY27, whereas large-cap earnings growth stood at around 12%, helping the broader market hold up better than large caps.
Kotak Mahindra AMC advises clients to be marginally overweight on mid caps, equal weight on large caps, and marginally underweight on small caps based on earnings growth and valuations.
