New Delhi, Dec. 18 -- India's equity markets may be entering a phase of cautious optimism, said Sushant Bhansali, CEO, Ambit Asset Management, in an interview with LiveMint. He believes the Nifty is positioned for mid-teen returns in a normal scenario, though global uncertainty could still trigger a 3-5% downside in FY27. At the same time, improved foreign liquidity could deliver an equivalent 3-5% positive surprise. Bhansali flags potential tax changes as "an unquantifiable risk," emphasising that investors should avoid speculative positioning ahead of the Budget.

Corporate earnings seem to have bottomed out in H1, and we expect earnings recovery from FY26 H2 onwards. The current consensus Nifty EPS estimates suggest mid-teens growth in...