Bond yields have climbed, oil prices are higher, and food inflation remains stubborn, creating a risk‑off mood that keeps Indian equities flat.
Sambre said a breakout will only come when corporate earnings show a clear upward trend, with a six‑month consolidation likely before any move.
He highlighted that mid‑cap and small‑cap earnings have outpaced large caps, a trend that has been evident over the past two years of earnings sluggishness.
Manufacturing and pharmaceuticals are seen as potential catalysts, while IT and banking valuations look attractive from a value perspective, though selective buying is advised.
On the regulatory front, proposed insurance rules could hit distribution and lenders hard, and investors are still weighing the eventual impact.
The market’s reaction hinges on how the final regulations shape up; a less severe outcome could unlock upside for affected stocks.