India is on the brink of a new investment upswing, with domestic equities currently trading at fair levels compared to global counterparts, as per a recent report. The Nifty 50 stands at around 20 times P/E, lower than its historical averages, reflecting solid macroeconomic fundamentals and an anticipated GDP growth of 7.3–7.5 percent. Emkay Global Financial Services’ report underscores the shift towards sectors like manufacturing, infrastructure, and energy, presenting long-term investment prospects.
Yatin Singh, CEO of Investment Banking at Emkay Global Financial Services, noted the emerging investment upcycle in India, driven by improved corporate balance sheets, policy backing, and a pragmatic approach from promoters. Following a notable decline, the Nifty 50 is presently trading at about 20.23 times TTM P/E, notably under its 1-year median of 22.30x and 10-year median of 23.50x. This places India at an attractive valuation compared to global peers such as NASDAQ, Nikkei225, and DAX.
India’s valuation premium over emerging markets is supported by robust structural fundamentals, with an expected GDP growth of 7.3–7.5 percent in FY26 and Nifty earnings forecasted to grow at a low-to-mid-teens CAGR over FY26–FY28. The country’s economic stability and policy predictability, coupled with strong domestic capital inflows through SIPs, EPFO, and insurance channels, further enhance its investment appeal.
The nation is entering a prolonged investment cycle driven by manufacturing, infrastructure, and energy sectors, expected to shape India’s growth trajectory in the coming years. These sectors are poised to offer substantial growth opportunities, scale, and visibility for long-term investors. Promoters are increasingly open to partnering with institutional capital for growth acceleration, emphasizing the importance of strong governance and execution capabilities for sustained investment-led growth in India.
