Indias nominal GDP growth could accelerate to 11.5%-12% in FY27, supporting stronger corporate earnings. However, elevated valuations, rising equity supply and potentially slower domestic flows could limit broad market gains. Jefferies favours lenders, power, ports and real estate, but sees a selective stock-picking environment rather than a broad-based rally.

India's GDP grew 7.8% year-on-year in Q1 FY27, surpassing forecasts as strong domestic activity offset global challenges, according to MoSPI data released Monday.

India’s economy grew 7.8% in the April-June quarter of FY27, beating the RBI’s 7% forecast and market expectations of 7.1%. Manufacturing, financial and professional services,…