After two years of subdued market performance and sustained selling by foreign investors, is India poised for a stronger earnings cycle?

In this episode of the businessline Podcast, Lokeshwarri SK speaks with R. Sivakumar, Chief Investment Officer, Axis Mutual Fund, about the outlook for Indian equities and the key drivers shaping markets in FY27. Sivakumar explains why he believes earnings growth is rebounding, supported by improving nominal GDP growth, resilient corporate profitability, operating leverage and a stronger export environment.

The conversation explores whether recent corrections have made valuations more attractive, the opportunities and risks in mid- and small-cap stocks, and the factors driving foreign portfolio investor flows. He also shares his perspective on rising US bond yields, the growing influence of domestic investors, and why banking remains one of the most compelling sectors, with a particular preference for private banks.

From manufacturing and industrials to exports and private-sector capex, Sivakumar outlines the themes he believes could drive the next phase of India’s growth story, while cautioning investors against chasing momentum-driven narratives disconnected from fundamentals. Tune in as he shares his outlook on earnings, valuations, foreign flows and the sectors that could shape India’s next market cycle.

(Host:  Lokeshwarri SK; Producers: Renil S Verghese, Siddharth Mathew Cherian)

Published on October 21, 2026