Expert view: Nifty 50 may give negative returns in 2026, earnings may improve from Q3FY27, says Rahul Ghose of Hedged

Rahul Ghose of Hedged expects Nifty 50 to deliver marginally negative returns in 2026, with meaningful earnings improvement only from Q3FY27 onwards. FY26 Nifty EPS growth came in at just 4.5 percent, marking the eighth consecutive quarter of weak earnings, while BFSI, FMCG, and IT services (60 percent of Nifty weight) all struggle with low single-digit growth. However, the broader market of 3,081 listed companies posted 15.1 percent YoY profit growth in Q4FY26, and the Nifty Midcap 150 has hit an all-time high, supported by easing crude, a firmer rupee at 84.33, and returning FII buying.