Nuvama Wealth and Investment expects Samvat 2083 to mark a revival in Indian equities, with improving valuations, potential foreign investor inflows and easing global uncertainties creating room for a market re-rating.
In its Samvat 2083 outlook, the brokerage said the previous year was marked by corrections, consolidation and divergence, with persistent foreign institutional investor (FII) selling, elevated index shorts and global uncertainty weighing on sentiment.
Mid- and smallcap stocks faced a meaningful valuation reset despite relatively resilient earnings, while uncertainty around US trade policies, tariffs and India-US trade negotiations further affected investor confidence.
Geopolitical tensions involving Israel, Iran and the US also heightened concerns over crude oil prices, inflation and global liquidity. However, corporate earnings remained relatively supportive even as Nifty valuations corrected towards multi-year lows, improving the risk-reward equation.
Nuvama said its Diwali 2025 stock basket generated over 40% alpha over the Nifty 50 despite the challenging market environment.