Nifty may fall another 7-8% as earnings outlook weakens, warns Invesco’s Taher Badshah
Published on 27/03/2026 12:51 PM
Nifty may fall another 7-8% as earnings outlook weakens, warns Invesco’s Taher BadshahTahir Badshah, CIO of Invesco Mutual Fund, warns that FY27 earnings growth expectations may be halved to 6-7%, adjusting market valuations to an average of 19 times forward earnings. He projects a potential further downside of 7-8% for the Nifty and 10% for the broader market. Badshah advises focusing on companies with strong pricing power and expresses a constructive view on the undervalued IT sector, which could benefit from mean reversion.By Alpha Desk March 27, 2026, 12:51:58 PM IST (Published)2 Min ReadTaher Badshah, Chief Investment Officer of Invesco Mutual Fund, which manages assets worth over $14 billion highlighted that earnings growth expectations are being revised lower amid rising inflation and global uncertainties
He noted that markets had initially pencilled in 13–15% earnings growth for FY27, but this is now likely to moderate to around 6–7%.
He also cautioned that if the current environment worsens, markets could even begin to factor in near-zero earnings growth, which would imply further downside risks to valuations.
Badshah projected a further downside of 7-8% for the Nifty and up to 10% for the broader market before a potential bottom is found.
Read Here | Earnings cuts, capex delay loom as oil stays high: Nomura
On the timing of the earnings impact, Badshah does not anticipate a major hit in the March quarter results. However, he expects the June quarter to be the first to reflect the pressure, especially if energy prices remain elevated. A "full-blown impact," he concluded, would likely be more visible in the second part of the calendar year 2026.
Commenting on the information technology (IT) sector, Badshah expressed an incrementally constructive view, noting its recent relative outperformance after a significant battering. He highlighted that Invesco had started looking at the sector from a value standpoint even during its recent AI-related meltdown.
“This is one of the sectors which has probably underperformed the most on a three, six-month kind of a basis and it has probably taken the most of the pounding,” he said. He believes the sector may find favour due to mean reversion and its somewhat limited direct exposure to the ongoing geopolitical conflict.
For full interview, watch accompanying video
Follow our live blog for more stock market updates
Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Continue Reading(Edited by : alphadesk)TagsearningsInvesco Mutual FundMarket analystsMarket Outlooknifty