India’s equity market closed unchanged, registering a 0.0% move that underscores its flat trajectory over the past couple of years—NEWPAR The manufacturing sector, however, is showing a clear upward trend. Mahesh Nandurkar, Head of India Research at Jefferies, points to defense, space, and electric‑related manufacturing as the new growth engines for the market. This shift is attracting analysts’ attention, even as broader indices remain muted. —NEWPAR Large‑cap banks also enter the conversation. Nandurkar notes that despite low investor expectations, banks could deliver strong returns if they meet or beat EPS forecasts. He cautions that management transitions in some banks need resolution, but established processes may offset these risks. —NEWPAR A looming challenge is the rising equity paper supply from IPOs, follow‑on offerings, QIPs, PE exits, and promoter block deals. This increased supply could limit broader market performance, a concern that is gaining traction among institutional investors. —NEWPAR Foreign portfolio sentiment has improved in recent months, and foreign currency NRE deposits could help stabilise the rupee. Even if crude oil prices climb to $95–$100 per barrel, India’s current account deficit is expected to stay well within 2% of GDP, easing some headwinds for equities. —NEWPAR Looking ahead, Nandurkar expects a larger upside once oil price volatility subsides. He advises investors to monitor EPS expectations closely, as those that are met or exceeded tend to sustain high returns despite valuations. The next quarterly report will be a key trigger for market direction.