ICICI Prudential Asset Management Company is forecasting a recovery in corporate earnings for the second half of fiscal year 2027, according to senior fund manager Dharmesh Kakkad.
The outlook suggests that Indian equities may find support from improving fundamental metrics in the coming quarters, even as macroeconomic headwinds persist.
Kakkad highlighted the ongoing El Niño weather pattern as a critical variable for investors to monitor.
Any significant disruption to the monsoon rainfall could have downstream effects on agricultural output and rural consumption, potentially dampening the broader economic recovery.
The fund manager’s comments underscore the delicate balance between corporate profit growth and climate-driven macro risks in the current market environment.
The perspective comes as Peru’s Multisectoral Commission for the National Study of the El Niño Phenomenon (Enfen) recently issued a forecast predicting a moderate to strong El Niño event for the 2026-2027 summer season.