Lower crude, easing FII selling brighten market outlook; large-cap financials offer better value: Kunal Vora

Market construct is improving as crude oil retreats to about $70-75 per barrel, easing pressure on corporate earnings, forex reserves, interest rates and the fiscal position. The upcoming earnings season is likely to be weak due to last quarter's crude spike and currency fluctuations, but this is seen as temporary rather than structural, with the FY28 outlook largely unchanged. Private sector banks remain a top conviction pick with expected earnings growth of 15-18% in FY27, while consumer staples post-GST cut and telecom (on potential tariff hikes) are also viewed favourably.