India's Earnings Season Gains Momentum with Over 2,045 Companies Reporting

The Indian earnings season is expected to gain momentum this week, with over 2,045 companies scheduled to announce their June quarter results. This marks a 10% growth in corporate earnings, the strongest expansion in four quarters.

The first half of the year saw concerns over an economic slowdown and valuation de-rating weighing on market returns. However, Goldman Sachs is now optimistic about Indian equities, citing lower commodity prices, a stabilised currency, and resilient domestic growth as key factors.

The brokerage firm expects investors to rotate from growth stocks to value plays in the second half of the year. It also predicts that foreign outflows will reverse, benefiting large-cap stocks and banks. Goldman Sachs is forecasting the Nifty 50 to rebound to 26,500 by June 2027, above its current record high.