New Delhi, Oct 20 : The stage is set for an earnings-led recovery in India's equity markets, market watchers said on Monday, as Samvat 2082 is set to begin on October 21.

Amisha Vora, Chairperson and Managing Director, PL Capital, said that the coming year offers investors an opportunity to participate in India's next leg of compounding, "driven by revival in corporate earnings and broad-based economic expansion.'

'As we usher in Samvat 2082, optimism is gradually returning to Indian markets. The year gone by tested investor patience, with India lagging global peers despite strong domestic fundamentals," Vora said.

Samvat 2082 will begin on October 21, and a symbolic Muhurat session will be conducted to mark the start of the Vikram Samvat year in the Hindu calendar.

Vora highlighted structural reforms, the implementation of GST 2.0, income tax relief, and a supportive policy stance as factors contributing to growth and easing liquidity conditions.

India's GDP is expected to grow by approximately 6.8 per cent in FY26-- among the fastest globally, underscoring the country's resilient growth narrative, Vora added.

Valuations are reasonable, earnings downgrades have largely bottomed out, and domestic inflows continue to demonstrate remarkable strength even as foreign investors remain cautious, she mentioned.

This creates a favourable setup for Indian equities to outperform in the new Samvat, Vora forecasted.

Analysts forecasted that the average earnings from Nifty 50 companies are expected to grow 8 per cent in FY26 and 16 per cent in FY27, driven by policy measures, macro resilience, and a maturing domestic investor base.

Motilal Oswal Financial Services Ltd (MOFSL) said that it is positive on BFSI, capital markets, consumption, manufacturing, and digital sectors.

While global headwinds such as trade frictions and slowing growth persist, analysts noted that India stands out as a macro-stable, liquidity-rich, and policy-supported economy.

/IANS