Investors may see up to 15% returns from equities

Pickup in earnings growth and sustained foreign flows hold key

- SUNDAR SETHURAMAN

After a year of modest returns, equity investors may anticipate gains of 10-15 per cent in Samvat 2082, which began on Tuesday.

Although valuations have moderated from their peaks a year earlier, they remain above long-term averages, potentially limiting sharp upsides. Analysts say the trajectory of corporate earnings, economic growth, and the pace of foreign portfolio inflows will be key factors shaping market performance over the coming year.

In Samvat 2081, benchmark indices paused after two strong years, with the Nifty and Sensex recording modest gains of 6.8 per cent and 5.8 per cent, respectively.

The broader Nifty Midcap 100 managed a 5.8 per cent rise, while the Nifty Smallcap 100 declined 2.1 per cent, following consecutive rallies of over 30 per cent in Samvats 2079 and 2080.

Muted earnings growth, headwinds from US trade policies such as higher tariffs on Indian exports and steep visa fees-along with persistent FPI outflows to more attractive markets like China, dragged domestic market performance during the year.