Analyst vigilant over the profit growth of Indian companies

Ahmedabad: Even though the markets have recovered from the lower levels, analysts are cautious about the profit growth estimates of Indian companies in the upcoming quarters. Analysts have neutralized equity markets as asset classes in all major areas including India, as the atmosphere of risk is weakening due to policy uncertainty and increasing instability over American tariffs. They believe that the Nifty 50 index will reach 26,000 in 12 months, showing an increase of about 7 percent from the current level.

According to analysts, we remain neutral to Indian equity, as they are relatively less sensitive to tariff effects, but negative income modification can lead to obstacles. The decline in Chinese exports is increasing competition for businesses in ASEAN countries and income speed is being affected.

Analysts believe that the market seems to be highly optimistic and intimate about the Indian corporate income estimates. Income estimates for FY 26 and FY 27 have seen a decline in some sectors and companies. We believe that revenue will fall due to pressure on global and domestic development. Currently, we are estimating a 12% increase in net profit of the Nifty-50 index for FY 2026.

At this stage, due to the growth of global GDP and uncertainty on American tariffs, market automobiles, IT services, pharma and specific chemicals can be highly optimistic about income from export-oriented areas.