Equity Market Outlook November 2026 | Shibani Kurian on Earnings & Valuations

Kotak Mutual Fund • 1 day ago

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What This Video Is About

The video discusses the Indian equity market outlook for November 2026, covering the overall setup, valuations, earnings growth, and approach to portfolio construction. Mr. Shivani Korian, Head of Equity Research at Kotak Mahindra Asset Management Company Limited, shares his insights on the market.

Major Ideas Discussed

  • The overall setup for Indian equities is volatile due to global uncertainty, but earnings growth for Indian corporates is improving, and valuations have become more reasonable.
  • The Nifty is trading below its long-term average multiples on a 12-month forward price-to-earnings basis, and mid-caps are trading slightly below their long-term average multiples.
  • The approach to portfolio construction is largely bottom-up, with a focus on mid-caps and large caps offering better risk-reward, and being slightly overweight in these segments.
  • The Q2 FY27 earnings season has seen fairly robust trends, with 17 out of 50 Nifty companies reporting 18% year-on-year earnings growth.
  • Valuations across market segments are reasonable, with the PEG ratio for India at 1.1 times, which is fairly reasonable in the context of the globe.
  • Preferred sectors and themes include domestic-facing sectors and those with visibility of earnings growth, such as financials, which have seen a pickup in earnings and strong loan growth.
  • The liquidity environment is divergent, with foreign institutional investors being net sellers in the secondary markets, but participating in the primary markets, and domestic institutional investors being net buyers.

What to Watch Next

Investors should focus on a long-term disciplined approach to investment, with an eye on asset allocation, and look for longer-term investment opportunities, staying disciplined and avoiding attempts to time the market.