Fund Manager Talk | FY26 earnings will grow by 12-13% after 5-6% downgrade: Srinivas Rao Ravuri

Srinivas Rao Ravuri, Chief Investment Officer, Bajaj Allianz Life Insurance.

While a 12-13% earnings growth rate may not seem particularly strong at first glance, we believe it represents a credible target given the prevailing global uncertainties, he said in an interview with ET Markets.

Edited excerpts from a conversation:

What is your outlook on equity markets for the next 12–18 months, considering global uncertainties and domestic growth trends? Is this the time to buy the fear?

The global environment remains highly volatile, with uncertainties surrounding tariff-related actions by the new U.S. administration. On the domestic front, conditions appear to be improving, as high-frequency indicators suggest a return to growth normalization. Following the market correction over the past six months, valuations—particularly for large-cap stocks—now seem reasonable. Consequently, our outlook for equities has improved from a 12- to 18-month perspective.

However, given the inherent volatility of equity markets, we believe investors should adopt a long-term perspective, ideally with a minimum investment horizon of three to five years. Equity investments should be limited to funds that investors do not anticipate needing for at least the next three years.

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For such long-term horizons, the outlook for Indian equities remains positive, supported by favorable demographics. India’s large and young population aspires to improve their standard of living, including better housing and automobiles. These fundamental