Nifty Sideways For Months: Why Large Caps Aren’t Falling Or Rising? Expert Explains

The Nifty and Bank Nifty have remained stuck in a narrow range, leaving investors waiting for a decisive breakout. Devarsh Vakil, Head of Prime Research, HDFC Securities, explains why high valuations are limiting the upside while strong domestic flows are providing support on the downside. He discusses Nifty earnings growth, FY27 and FY28 valuations, domestic liquidity from mutual funds, insurance and EPFO flows, and India’s relative performance against other Asian markets. He also shares his outlook on FII flows, geopolitical risks and the possibility of Nifty moving towards previous highs. Will the market finally break out of its prolonged consolidation?