New Delhi, Sept. 3 -- The Indian stock market is expected to deliver strong double-digit returns over the next 2-3 years, led by strong domestic economic growth, rising capex, and the consumption boost from the recent Union Budget and GST 2.0 reforms, driving credit growth for banks, Axis Securities said.

Against this backdrop, the brokerage firm foresees Nifty 50 earnings to post excellent growth of 13% CAGR over FY23-27. Financials will remain the biggest contributors for FY26/27 earnings. However, trade policy uncertainty, rupee depreciation, and relatively higher valuations compared to other emerging markets, even after the correction, remain key risks to near-term market multiples.

After the Q1 results, in its base case, Axis Secur...