Stories
Mirae CIO Neelesh Surana Sees Stronger Returns Ahead As Nifty Risks Are Priced In
- •Mirae Asset Mutual Fund CIO Neelesh Surana expects another stable quarter for earnings, with broad-based topline growth of around 15 percent though margins may face pressure.
- •The Nifty is currently about 14 percent below its two-year high with reasonable valuations, and much of the risk appears to be already priced in.
- •The RBI is expected to begin a shallow rate-hiking cycle in October with a 25-basis-point increase while maintaining a neutral stance.
- •Private capex in India is beginning to recover with manufacturing capacity utilisation staying above 75 percent, though investors should remain selective due to high valuations in the capital goods sector.
- •FII equity outflows have reached 28 billion dollars in calendar year 2026, but strong domestic institutional investor inflows of 67.8 billion dollars have helped reduce market volatility.
Key Questions Answered
Neelesh Surana expects the RBI to begin a shallow rate-hiking cycle in October with a 25-basis-point increase while maintaining a neutral stance. For Q2FY27 earnings, he anticipates another stable quarter featuring broad-based topline growth of around 15 percent, with financials, telecom, and metals driving aggregate performance.
The Nifty 50 is trading nearly 14 percent below its two-year high with a forward PE of about 18x, which is 15 percent below its 10-year median. High-frequency indicators confirm that fundamental economic strength remains intact with healthy underlying demand, suggesting that stable corporate earnings will limit market downside.
FII equity outflows stand at US$28 billion in CY26, while domestic institutional investor inflows have reached US$67.8 billion during the same period. Foreign ownership of Indian stocks is at a 14-year low of 14.7 percent, and stable earnings alongside India's status as a top-growing major economy are expected to attract future FII flows.
