Indian stocks may recover on steady growth and earnings, says Axis AMC
The Nifty 50 has fallen about 12 per cent in 2026 following a decade of gains and high foreign outflows.
Indian stocks could see a recovery during the rest of the financial year due to steady economic growth and resilient earnings, according to Business Standard.
Sachin Relekar, senior equity fund manager at Axis Asset Management Company, said on Thursday that India's sustained growth above 7 per cent could improve the outlook.
The Nifty 50 has declined by approximately 12 per cent so far in 2026. This follows 10 years of gains and has been pressured by record foreign outflows of $31.3 billion and higher oil prices.
Relekar noted that foreign fund outflows reflect factors like global bond yields, currency movements and crude prices rather than doubts about India's growth. He added that the risk-reward ratio is improved compared to last year, which may assist a rebound.
The fund manager expressed interest in themes such as domestic manufacturing, energy, electrification, consumer internet and AI-led capital expenditure. He also favours non-bank financial companies and private-sector banks because of steady earnings and attractive valuations.
Relekar cautioned against investing in companies facing intense competition from e-commerce platforms or those vulnerable to technological disruption.