Nifty earnings seen rising 27%, strongest growth in 17 quarters in Q2

India's Q2FY27 earnings season is expected to see a strong recovery in corporate profitability, with Nifty 50 earnings projected to grow 27% year-on-year, marking the highest growth in 17 quarters, according to Motilal Oswal.

Domestic fundamentals and liquidity conditions are supporting the positive outlook. However, persistent foreign investor outflows, weak sentiment among foreign investors and global macroeconomic headwinds remain key challenges for Indian equities.