Expert view: Nifty's core growth drivers remain attractive, valuation offers margin of safety, says Bharti AXA Life CIO

For 2026, the CIO notes Nifty's one-year forward PE at nearly 20x sits below the long-term 10-year average of nearly 21x, offering a margin of safety, with FY27 EPS expansion expected at 15-16%. He flags rising global bond yields, US inflation, and the West Asia conflict as primary risks to global risk assets, but views a potential FII flow reversal as domestic earnings momentum accelerates past recent geopolitical headwinds. The CIO recommends a diversified portfolio across large, mid, and small caps, citing compelling growth potential particularly in mid and small-caps alongside positive outlook for large caps in BFS, consumer, industrials, and healthcare sectors.