Nifty could deliver low-teen returns as earnings drive next leg of bull market: Anand Rathi AMC

Anand Rathi AMC expects Nifty to deliver low-teen returns over the next 12 months, driven by 11-12% earnings growth in FY27 supported by nominal GDP growth of 10-10.5% and credit growth at an 18% two-year high. FII buying after approximately ₹2.6 lakh crore of outflows over the previous four months is viewed as tactical rather than strategic, requiring a stable rupee and global tech rotation for sustained reallocation. Earnings upgrade potential is concentrated in Financials and Industrials/Capital Goods, while downgrade risks persist in IT Services, Airlines, General Insurance, and select Oil & Gas/OMCs.