UBS Wealth expects double-digit Nifty returns over next 12 months as earnings growth rebounds

Hartmut Issel, Head of Equity and Credit APAC and CIO at UBS Wealth Management, expects Indian corporate earnings growth to recover in 2025-26 (FY26) to 15% from the lower base of the current financial year. This is likely to result in double-digit Nifty returns over the next 12 months.

“India has been doing very well, and we think it will also do so again. I would estimate in the June quarter (April-June 2025 – Q1FY26), when the earnings growth probably comes up a little bit,” he said.

Issel pointed out that industries like consumer, cement, autos, and oil and gas have been growing at nearly zero, but this trend is set to reverse in FY26.

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Issel believes that with Chinese tech earnings improving, investors may no longer see India and China as mutually exclusive markets.

UBS forecasts 6-7% earnings growth in 2026 for China, which is already cheaper than India.

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For the entire interview, watch the accompanying video

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