Nifty nears 26,000: Market still not overvalued, says LIC MF’s Jaiprakash Toshniwal

With the Nifty inching closer to the 26,000 mark, Jaiprakash Toshniwal, fund manager at LIC MF Asset Management, believes the Indian market remains fairly valued, supported by strong earnings momentum and positive macroeconomic indicators.Speaking to ET Now, Toshniwal noted that valuations are still close to the 10-year moving average, indicating that the markets are not expensive despite record highs. “Earnings growth has picked up in the broader market, especially among mid- and small-caps. We expect lower double-digit earnings growth in FY27,” he said.

Stronger recovery next year

While FY26 is likely to see high single-digit growth, Toshniwal expects a stronger recovery next year, driven by the recovery in the banking, pharmaceutical and IT sectors. “The banking industry has stabilized thanks to positive management commentary, the pharmaceutical industry is rebounding and IT could surprise on the upside with big deals,” he added.

On the consumption front, he expects cuts in VAT and interest rates to benefit mid- and premium consumption segments, while the capital goods sector – especially those related to data centres, energy and defense – should see robust growth in the second half of the fiscal.

“The market’s recent rally has strong structural support,” Toshniwal said, adding that retail credit growth, improving liquidity and solid domestic demand will continue to drive the market throughout FY27.