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Updated Feb 16, 2026 05:18 PM IST
As Nifty crosses 25,600, LIC MF’s Dikshit Mittal sees improving earnings visibility, bullish prospects for private capex, manufacturing, banks and consumption, cautious near-term view on IT and optimism on textiles amid tariff clarity.
Highlights
- Improving macros, easing global risks and earnings growth likely to accelerate to double digits in FY27.
- Private capex, manufacturing, banks and consumption seen outperforming; IT remains wait-and-watch on earnings visibility.
- Recent India-US and India-EU trade deals support manufacturing, exports and textiles with stronger medium-term visibility.
As Nifty reclaims 25,600 amid improving earnings visibility, Dikshit Mittal, Senior Fund Manager, Equity at LIC Mutual Fund, shares his outlook on markets. He discusses why private capex, manufacturing, banks and consumption could outperform in FY27. The IT sector remains on a wait-and-watch mode due to limited earnings visibility, while textiles benefit from tariff clarity.
In an exclusive interview with ET Now, Dikshit discusses the current market outlook, while sharing insights on what is driving the Nifty’s recovery and which sectors are poised for growth.
Market assessment
Dikshit believes the market outlook is constructive, with macroeconomic indicators on an upward trajectory and corporate earnings expected to accelerate from mid-single digits to early double digits in FY27. He adds that global uncertainties such as tariff wars and geopolitical tensions are easing.
Bullish sectors
Private capex and manufacturing: According to Dikshit, private capex and manufacturing sector is expected to sustain strong growth, supported by new trade deals with the European Union (EU) and the US.
Private banks and consumption: Expressing bullish on private banks and consumption, Dikshit said that an earnings recovery is anticipated in these sectors in the next financial year.
IT sector: Talking about the IT segment, Dikshit said that the sector currently lacks earnings visibility, prompting a "wait and watch" approach in the near term. He explained that while business models remain intact, a revival in global software spending is needed for a sustained recovery.
Manufacturing sector
Dikshit suggests approaching manufacturing through import substitution, focusing on domestic production replacing imports and export-oriented themes involving companies integrated into global supply chains.
Other export-facing sectors
Other export-facing sectors are also in focus, with Dikshit advising selectivity in pharma, while textiles are seen enjoying strong visibility.
Pharma: Talking about the Pharma sector, Dikshit advised investors to be selective, with a preference for domestically oriented companies.
Textiles: He expressed bullish on textiles sector, saying that it offers good visibility over the next two to three years, aided by recent tariff-related announcements.
Stock Market
Dalal Street staged a rebound, with the Sensex and Nifty recovering from early losses to climb over half a per cent each. The upmove in the Sensex and Nifty was driven by gains in private and PSU banking stocks, supported by broader strength across financial shares.
The Sensex and Nifty closed in green territory on Monday, February 16. The BSE Sensex, after hitting an intraday high of 83,333.49, ended the session at 83,277.15, up 650.39 points or 0.79 per cent. The NSE Nifty50 settled at 25,682.75, up 211.65 points or 0.83 per cent. During the day Nifty50 swung between 25,697 and 25,372.70. Sensex and Nifty opened in red today. The BSE Sensex started at 82,480.40, while the Nifty 50 opened at 25,423.60.
Recent trade deals
The US and India recently announced that they have reached a framework for an interim trade agreement, under which America will reduce tariffs on India to 18 per cent. Both nations have announced that they have reached a framework for an Interim Agreement regarding reciprocal and mutually beneficial trade (Interim Agreement).
The framework reaffirms the countries’ commitment to the broader US-India Bilateral Trade Agreement (BTA) negotiations, launched by US President Donald Trump and Prime Minister Narendra Modi on February 13, 2025, which will include additional market access commitments and support more resilient supply chains.
Earlier, the EU and India concluded negotiations on a landmark free trade agreement, ending an 18-year gap since talks began in 2007. The deal will cut or remove duties on over 90 per cent of EU exports to India, creating a trade bloc spanning 2 billion people and marking the largest agreement ever for both sides.
Notably, the NDA government has finalised nine trade pacts since 2014: EU, the US, Australia, the UK, Oman, New Zealand, the UAE, the EFTA bloc and Mauritius. Before that, several pacts were implemented, and those include the 10-nation Asean (Association of Southeast Asian Nations) bloc, Japan, South Korea, Malaysia, SAFTA (South Asia Free Trade Agreement), and Singapore.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
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