FY27 may see low to mid-teen double-digit growth: ASK Investment's Sandip Bansal
Speaking to Business Today on Thursday, Bansal said that corporate earnings for the recent quarter (Q2 FY26) have largely met expectations.
- Nov 13, 2025,
- Updated Nov 13, 2025 6:33 PM IST
Sandip Bansal, Deputy Chief Investment Officer at ASK Investment Managers, expects the Indian equity market to witness low to mid-teen double-digit growth in FY27, supported by improving fundamentals, stable liquidity conditions and potential policy triggers.
Speaking to Business Today on Thursday, Bansal said that corporate earnings for the recent quarter (Q2 FY26) have largely met expectations. "Results have been in line with expectations. Expectations themselves were muted because in this quarter, there was the impact of US tariffs and GST, which led to some demand postponement, plus excessive monsoons in a few areas. Earnings growth has been 5-6 per cent in line and corporate commentaries going forward are positive," he said.
He added that the overall market environment remains constructive. "Fundamentals seem fine. FY27 is likely to be a double-digit, low to mid-teen kind of growth for the market," Bansal stated.
On the liquidity front, the market veteran noted that foreign institutional investors (FIIs), who were net sellers until September, turned buyers again in October. "At least there are signs of them being interested in India again, while domestic flows continue to be strong," he said.
Investor sentiment, according to him, is also improving on the back of several positive developments. "There is news flow suggesting that the trade deal with the US, which has been one of the key overhangs on the market, should be concluded in a month or two. Inflation prints have also been encouraging," he added.
However, Bansal acknowledged that valuations remain on the higher side. "Markets are not really cheap because we are trading at about 21 times one-year forward earnings, which is around the historical average. But if positive news flow continues and earnings momentum picks up from the second half of the year, as we expect, then the market should do fine," he explained.
The expert identified three major triggers that could shape market direction in the near term. First, the pending trade deal with the United States remains a significant overhang. "Most major economies have already reached an understanding with the US. India is among the few large countries that remain, maybe Brazil also. Whenever that happens, it will be a good relief for the markets," he said.
Second, he highlighted that further reforms in the Goods and Services Tax (GST) regime could provide a boost. "The government had indicated that the GST reforms implemented so far are just the beginning. More measures could follow. We have seen some ordering on the defence side, but a broader pickup in infrastructure activity, project announcements and PLI-related measures is awaited," he also said.
Third, Bansal pointed to the long-awaited private sector capex cycle. "That has been an expectation for a while. So far, it was delayed and now there's uncertainty around the US trade deal. But with demand improving, corporates having raised capital through QIPs and IPOs, and interest rates remaining favourable, next calendar year could see some revival in private investment," he noted.
Bansal said early signs of a demand recovery are emerging, especially in urban markets. "Concerns over an urban slowdown seem to be easing. The festive season demand has been good and we hope the strength continues," he added.
On sector preferences, ASK Investment remains bullish on telecom, infrastructure, manufacturing, and cement. "We are positive on the telecom space and have added to our positions there," he said. "We also like the infra, capex and manufacturing stories from a long-term perspective."
The cement sector, he added, appears poised for a strong recovery. "Margins in cement have significant room for expansion. We are entering a favorable construction season and the sector is also likely to benefit from ongoing consolidation," Bansal said.
Overall, Bansal believes that the combination of stable macro fundamentals, structural policy reforms, strong domestic inflows and improving global sentiment positions the Indian market well for steady growth. "If earnings momentum and policy clarity play out as expected, FY27 should deliver low to mid-teen double-digit returns," he concluded.
Sandip Bansal, Deputy Chief Investment Officer at ASK Investment Managers, expects the Indian equity market to witness low to mid-teen double-digit growth in FY27, supported by improving fundamentals, stable liquidity conditions and potential policy triggers.
Speaking to Business Today on Thursday, Bansal said that corporate earnings for the recent quarter (Q2 FY26) have largely met expectations. "Results have been in line with expectations. Expectations themselves were muted because in this quarter, there was the impact of US tariffs and GST, which led to some demand postponement, plus excessive monsoons in a few areas. Earnings growth has been 5-6 per cent in line and corporate commentaries going forward are positive," he said.
He added that the overall market environment remains constructive. "Fundamentals seem fine. FY27 is likely to be a double-digit, low to mid-teen kind of growth for the market," Bansal stated.
On the liquidity front, the market veteran noted that foreign institutional investors (FIIs), who were net sellers until September, turned buyers again in October. "At least there are signs of them being interested in India again, while domestic flows continue to be strong," he said.
Investor sentiment, according to him, is also improving on the back of several positive developments. "There is news flow suggesting that the trade deal with the US, which has been one of the key overhangs on the market, should be concluded in a month or two. Inflation prints have also been encouraging," he added.
However, Bansal acknowledged that valuations remain on the higher side. "Markets are not really cheap because we are trading at about 21 times one-year forward earnings, which is around the historical average. But if positive news flow continues and earnings momentum picks up from the second half of the year, as we expect, then the market should do fine," he explained.
The expert identified three major triggers that could shape market direction in the near term. First, the pending trade deal with the United States remains a significant overhang. "Most major economies have already reached an understanding with the US. India is among the few large countries that remain, maybe Brazil also. Whenever that happens, it will be a good relief for the markets," he said.
Second, he highlighted that further reforms in the Goods and Services Tax (GST) regime could provide a boost. "The government had indicated that the GST reforms implemented so far are just the beginning. More measures could follow. We have seen some ordering on the defence side, but a broader pickup in infrastructure activity, project announcements and PLI-related measures is awaited," he also said.
Third, Bansal pointed to the long-awaited private sector capex cycle. "That has been an expectation for a while. So far, it was delayed and now there's uncertainty around the US trade deal. But with demand improving, corporates having raised capital through QIPs and IPOs, and interest rates remaining favourable, next calendar year could see some revival in private investment," he noted.
Bansal said early signs of a demand recovery are emerging, especially in urban markets. "Concerns over an urban slowdown seem to be easing. The festive season demand has been good and we hope the strength continues," he added.
On sector preferences, ASK Investment remains bullish on telecom, infrastructure, manufacturing, and cement. "We are positive on the telecom space and have added to our positions there," he said. "We also like the infra, capex and manufacturing stories from a long-term perspective."
The cement sector, he added, appears poised for a strong recovery. "Margins in cement have significant room for expansion. We are entering a favorable construction season and the sector is also likely to benefit from ongoing consolidation," Bansal said.
Overall, Bansal believes that the combination of stable macro fundamentals, structural policy reforms, strong domestic inflows and improving global sentiment positions the Indian market well for steady growth. "If earnings momentum and policy clarity play out as expected, FY27 should deliver low to mid-teen double-digit returns," he concluded.