According to NDTV Profit, Manish Sonthalia, Director and Chief Investment Officer at Emkay Investment Managers Limited, believes the Indian equity market has limited reasons to turn bearish beyond Middle East tensions. Sonthalia stated that Nifty is unlikely to break below 22,000 decisively, despite ongoing geopolitical concerns. The market expert noted that the current move can be viewed as a relief rally, supported by lower valuations in certain market segments.
As reported by NDTV Profit, Sonthalia indicated that 44-45% of Nifty 500 companies are still projecting FY27 earnings growth above 25% even as the earnings season concludes. The market had previously factored in a possible 10-12% hit to FY27 earnings due to Middle East crisis concerns, but if the situation remains contained and settlement efforts begin, earnings growth estimates could move higher to 12-13%. Sonthalia noted that some of the earnings downgrades built into market expectations may need to be revised upward.
Union Finance Minister Nirmala Sitharaman warned on Monday that the coming decade would be challenging for global trade and industry, citing rising protectionism, climate risks, technological disruption and supply-chain volatility as major concerns for exporters and manufacturers. Speaking at the TEXPROCIL Exports Awards Function, Sitharaman said the 'decade ahead will not be easy,' as the world economy faces one of its most uncertain periods in decades. She highlighted that several countries are increasingly adopting non-tariff barriers and protectionist measures, making global competition more intense and complex for exporting nations such as India. The finance minister noted that climate change, supply-chain disruptions and technology-led labour displacement are reshaping industries worldwide.
Despite global challenges, Sitharaman emphasized that India is well-positioned to benefit from changing consumer preferences and global sourcing patterns. According to the finance minister, trends such as authenticity, sustainability and craft-based manufacturing are increasingly favouring India in international markets. She noted that sustainability is 'no longer an option' for exporters, with global retailers embedding sustainability standards directly into their sourcing criteria. The minister stressed that India's exports need to expand further despite the uncertain environment, with the Centre working on creating growth opportunities and enabling industries to adapt to changing global demand patterns. She added that artificial intelligence and automation are rapidly transforming the global textile industry, while technological advancements are steadily reducing labour costs across countries, making it crucial for Indian textile exporters to invest aggressively in skills, innovation and design capabilities at scale to remain globally competitive.
