"However, for the stock market, GDP alone is not enough. What truly matters is earnings growth. For the last six quarters up to September 2025, earnings growth has remained in single digits -- sometimes high single digits, sometimes mid single digits -- but never crossing double digits. This was unexpected for a market priced at a premium to global peers and expecting double-digit earnings growth, which is why markets consolidated and corrected," Shah said, adding, "Now, indices are again near all-time highs because there is hope that GST cuts will support the economy and revive corporate earnings. Even if we exclude the three oil marketing companies, overall earnings growth for the September 2025 quarter is still in single digits. But with festive spending, expectations are that earnings should return to double digits going forward." |
