Expert view: Strong opening to Q1 with recovery in banks, says Vinod Nair

Vinod Nair expects Q1FY27 earnings season to open on a positive note, with banking and IT sectors showing early signs of recovery after being 2025-26 laggards. System credit growth accelerated to 17.7 percent YoY (strongest in two years) while deposit growth lagged at 12 percent, and bank earnings are projected to grow 7-11 percent in FY27 supported by healthy loan volumes. Nifty Bank trades at a blended forward P/B of 1.51x against its five-year average of 1.99x, while Nifty IT at about 16x one-year forward PE offers attractive entry; Nifty IT revenue is estimated to grow around 14 percent YoY in Q1FY27 versus about 5 percent a year ago, even as Nifty50 margins are expected to contract 100-150 bps.