UTI's Vetri Subramaniam: FY27 Earnings Recovery Expected, But Valuations a Concern

• UTI AMC's Vetri Subramaniam anticipates improved earnings growth in FY27, driven by policy measures and stronger nominal GDP growth.
• He warns that despite better growth prospects, market valuations remain elevated, posing potential challenges.
• Global trade policy uncertainty, particularly regarding tariffs, hinders long-term investment decisions for businesses worldwide.
• India is still perceived as a premium-valued market by global investors, with increased discussions but limited capital inflows.
• Credit growth in the low-teens is seen as a key driver for economic momentum; banks, NBFCs, and insurance sectors offer growth potential.