New Delhi, Nov. 18 -- The Q2 results of Indian corporates have come as a bit of a surprise. Contrary to the cautious sentiment ahead of the earnings season, India Inc. has delivered an impressive performance, reinforcing the belief that the worst may be behind us and that the Indian stock market is poised for a significant upside as earnings growth is expected to further improve in the third and fourth quarters of the current financial year.

Perhaps the market has started discounting earnings growth. On a monthly scale, the Nifty 50 has been in the green since September this year, overall clocking a gain of more than 6 per cent. Year-to-date, the index is up by almost 10 per cent, and if there is no negative surprise, the index could end...