Indian equity markets have gone through a phase of consolidation over the past year, after seeing a strong rally in the period following the COVID-19 pandemic. Market experts believe this phase may soon give way to a recovery, supported by policy action and improving demand.
Siddhartha Khemka of Motilal Oswal Financial Services said 2025 has largely been a year of consolidation, not just for stock prices but also for corporate earnings. “After Covid, we saw two to three years of very strong earnings growth. Over the last one to one-and-a-half years, earnings have grown at mid-single-digit levels, which led to consolidation in the market,” he said.
However, Khemka is optimistic about the road ahead. “Going forward, we believe corporate earnings growth should recover,” he said, adding that support from the RBI and the central government, including interest rate cuts, liquidity measures and GST rate cuts, could help. He also noted that festive season demand and cooler valuations, especially in large-cap stocks, may lift markets. “We expect markets to recover in 2026, with returns of around 10–15%,” he said.
Meanwhile, Harshvardhan Roongta, CEO of Roongta Securities, speaking on SEBI lowering the mutual fund fee cap, said that the regulatory changes are aimed at improving investor outcomes. “SEBI’s intent is very clear — to make markets more efficient, processes more transparent, and provide economies of scale benefits to investors,” he said, adding that this should improve the overall investor experience and returns.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
