After months of pain, Dalal Street is ready for a comeback? ICICI Securities explains why

ICICI Securities believes Indian equities are poised for a comeback after months of underperformance, citing improved valuations with PE compressed from about 24x to 18x and moderating FPI selling of Rs 2.73 trillion year-to-date as of June 24. Softer crude oil prices below $80 per barrel, a stronger rupee below 95 against the dollar, India's 7.8% GDP growth in Q4 FY26, a current account surplus, and easing 10-year bond yields below 6.9% further support the outlook. The brokerage sees nominal profit growth of 14-15% tracking valuations even without re-rating, while flagging risks from a possible El Nino event and geopolitical tensions.