However, the fund house believes that India’s domestic growth outlook remains resilient, despite global headwinds. This was attributed to a corrected real effective exchange rate for the rupee; soft oil prices, reducing the current account deficit; healthy corporate balance sheets; and the RBI’s pro-growth stance and ample liquidity.
“These macro tailwinds particularly benefit banks and NBFCs, improving credit flow and overall economic momentum,” Janakiraman added.
Franklin Templeton expects muted Q4 FY25 earnings, with mid-single-digit growth, but maintains a 13% consensus earnings growth forecast for FY26—while cautioning that the market remains sensitive to potential earnings downgrades.
On the fixed income side, the fund house sees favorable opportunities at the short and intermediate end of the yield curve, citing softening global commodity prices, China’s manufacturing weakness, and policy risks such as stagflation in the US and rate hikes in Japan.
(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)