Stocks to Buy, Nov. 25 -- CLSA expects Indian equities to deliver around 16% upside by December 2026, arguing that the market is emerging from a long adjustment phase and is now building a more stable profitability base for the coming years.

According to the brokerage, the past 14 months have been defined by a reset in expectations: GDP growth assumptions were revised lower, earnings-per-share projections moderated from elevated levels, and the currency weakened. Despite this reset, CLSA said the market has now reached a point where profitability appears more predictable, supported by an improving tolerance for foreign fund outflows and a transition away from peak equity supply.

The brokerage, however, highlighted an interesting trend i...