Earnings recovery critical for market rerating, says Sailesh Raj Bhan

Equity markets have spent nearly nine months consolidating since June 2024, says Bhan

Markets have entered the second half (H2) of calendar year 2025 (CY25) near record highs. Sailesh Raj Bhan, chief investment officer for equity investments at Nippon India Mutual Fund, tells Puneet Wadhwa in an email interview that the sticky nature of systematic investment plans (SIPs), high liquidity, and the recent revival in market sentiment — along with improved earnings expectations — are likely to support domestic flows even in H2CY25. Edited excerpts:

 

What are the top risks that investors should be aware of in H2CY25?

 

Given the large geopolitical developments, global growth rates may face challenges — a key risk.