Nifty down 11% from peak but no real value in the market: Kotak Equities
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The Nifty 50 index has fallen 11% from its peak, signaling a sharp correction across Indian equities. Despite the decline, Kotak Institutional Equities remains unconvinced about market prospects, warning that there is "no real value" to be found even after the pullback, citing stretched valuations, limited earnings growth potential, and unfavorable global macroeconomic conditions. “The recent sharp correction in the Indian market and across stocks of all caps does not change our cautious outlook, given full-to-frothy valuations in most parts of the market,” Kotak noted in its latest report. The brokerage highlighted three key concerns: earnings upgrades are unlikely due to overly aggressive assumptions, many stocks remain overvalued, and global bond yields are expected to stay higher for longer. Kotak projected earnings growth of 16% for FY26 and 14% for FY27 for the Nifty 50, with the index currently trading at 19.5 times FY26 ...