Nifty earnings to rise by 13% in next financial year, says Harendra Kumar 

Sensex and Nifty are set to end this year on a positive note. While Sensex has gained over 9% till date, the 50-stock Nifty is up 10.36% this year. Both the indices are trading near their record highs. The rally in the benchmark indices can be partly attributed to the Q2 earnings season which met street estimates. 

In a conversation with Business Today, Harendra Kumar, MD - Institutional Equities, at Elara Securities says Nifty earnings will go up by around 13 percent for the next financial year and 15 percent the following year.

He expects the market to reprice earnings much faster than the actual earnings.

On the midcaps and smallcaps not taking part in the current market rally, Kumar says in the early part of 2026 will be a large cap show but he expects midcaps and small caps to take the upward trajectory as the rally picks up steam. 

"So that has been the trend and that will be the trend going ahead as well because in terms of the valuation arbitrage, the large caps are sitting around 15 to 20 percent discount to their intrinsic value," added Kumar

Meanwhile, benchmark indices Sensex and Nifty ended lower on Friday, reversing their early gains amid selling pressure in heavyweight counters such as Power Grid Corporation and Bharti Airtel.

Sensex fell 13.71 points, or 0.02 per cent, to end at 85,706.67. The Nifty50 dropped 12.60 points, or 0.05 per cent, to settle at 26,202.95.

Power Grid was the top loser on the Sensex, declining 1.35 per cent to Rs 270. Bharti Airtel followed with a 0.68 per cent drop. Among other laggards, Eternal, Infosys, ICICI Bank and Bajaj Finserv lost 0.66 per cent, 0.56 per cent, 0.36 per cent and 0.35 per cent, respectively.

Shares of HDFC Bank, Bharti Airtel, ICICI Bank, Infosys and Power Grid, contributed heavily to the Sensex’s decline.