New Delhi, March 17 -- Even though markets have recovered in March after five months of losses, a definitive market turnaround is expected only by the second half of financial year 2026 (H2FY26), Caprize Investment, a smallcase manager, anticipates. The brokerage noted that the ongoing market correction and consolidation are likely to persist as capital outflows continue over the next two quarters in the absence of new policy reforms. However, high-growth sectors with strong earnings visibility are expected to stabilise.

As market estimates transition to financial year 2027 (FY27) post-Q1 FY26 earnings, Caprize Investment believes high-growth stocks will start appearing attractively valued, setting the stage for the next earnings re-rati...