Indian Equities Not Bubble Zone, Earnings Catching Up: Kotak's Shah

• Indian equities are not in a "bubble zone" as valuations become reasonable and earnings catch up, according to Kotak Securities' Shripal Shah.
• The market's time-and-price correction in 2024 helped normalize valuations and balance the setup.
• Kotak Securities anticipates a sharper earnings recovery in FY26 (around 17% growth) and projects FY27 Nifty EPS at Rs 1,372.
• Earnings trajectory, not valuations, is expected to be the primary market driver through 2025.
• Kotak maintains a constructive view on the Nifty, projecting a base-case return of around 12% for 2025, driven by domestic-facing sectors.

Why It Matters: It offers investors a key expert's view on Indian market valuation and future growth.