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Indian market recovery could be closer than investors think
Gaurav Bhandari of Monarch Networth Capital points to Nifty 500 earnings growth of 15.6% in FY26, banking NPAs at a 15-year low, and the index trading near 20 times trailing P/E versus a 5-year median of 22.
Monarch Networth Capital CEO Gaurav Bhandari said he believes a recovery in the Indian equity market may be closer than many investors expect, arguing the downturn largely reflects a correction after the market moved ahead of fundamentals.
In an interview with Mint, Bhandari cited the Nifty peaking at 26,373 on 5 January 2026 and trading near 24,000, with an 8% plus year-to-date decline and a 4% drop over the past 12 months, while maintaining that the underlying economy remains supportive.
He highlighted corporate earnings growth for the Nifty 500 of 15.6% in FY26 and said banking sector NPAs are at a 15-year low. Bhandari also pointed to India’s GDP growth of 6.5% to 7% and argued valuations offer a more constructive setup.
On valuation, he said the Nifty is trading at about 20 times trailing P/E, below the 5-year median of 22 times, and is closer to the bottom of its 52-week range of 22,182 to 26,373 than the top. He added that he favors maintaining discipline through phases like this, including continuing SIPs without interruption and rebalancing if equity allocations fall below targets.