Large cap stocks are attracting renewed interest as falling prices and expectations of stronger earnings raise a question for Indian investors. Are India’s biggest listed companies becoming too cheap to ignore?

In this episode of The Core Report Weekend Edition, financial journalist Govindraj Ethiraj speaks with Shripal Shah of Kotak Neo about large cap valuations, the Indian stock market and how investors are rethinking their portfolios.

Shripal Shah says some investors are returning to large cap stocks following corrections in mid cap and small cap shares. Quality businesses at more reasonable valuations are drawing attention after sustained foreign portfolio investor selling.

Citing Kotak Institutional Equities research, he outlines expectations of 17–18% earnings growth for Nifty 50 companies in FY2026–27, followed by approximately 15–16% the following year. He points to a forward price-to-earnings multiple of around 16 for the following year. The valuation case depends on those earnings expectations materialising.

But finding value involves more than buying after prices fall. Shripal Shah argues that difficult markets have challenged expectations of easy profits and brought attention back to fundamentals, patience and long-term wealth creation.

The conversation explores how investors move from experimenting with derivatives towards mutual funds, SIPs and investments linked to their financial goals. Shripal Shah explains why portfolio diversification across market caps, asset classes and geographies matters.

Beyond equities, he discusses gold and silver ETFs, PMS, AIFs and global investing through GIFT City. He also makes the case for greater attention to debt, REITs and InvITs as portfolio options.

India’s brokerage industry is changing alongside its customers. Shripal Shah examines the shift beyond derivatives towards wealth management and advisory services, the evolution of Kotak Neo, and why investors using digital platforms still seek human guidance.

Could the next opportunity lie in large cap stocks that investors have been overlooking?

Watch the full conversation for insights into Nifty 50 earnings, stock market valuations, portfolio diversification, retail investing and the changing business of stockbroking.

Chapters:

01:14 Introduction: Shripal Shah, Kotak Neo

01:50 India's Shift From Savers to Investors

04:01 Why Diversification Matters in Today's Markets

05:36 How India's Brokerage Industry Is Changing

07:04 Kotak's Shift From Traditional Broking to Digital

09:03 Why Investors Want Both Technology and Human Advice

11:29 Are Retail Investors Using Stock Market Research?

12:34 Why Young Investors Are Starting With Derivatives

14:00 How Investment Needs Change With Wealth

15:40 PMS, AIFs and the Rise of Portfolio Investing

17:20 Why Investors Are Returning to Large-Cap Stocks

19:18 Gold, Silver and the Diversification Trade

20:23 3 Crore New Accounts, but 50 Lakh Fewer Active Accounts

21:54 Can Brokerages Move Beyond Derivatives?

25:04 Why Human Advice Still Matters in Digital Trading

26:49 India's Shift From Bank Deposits to Equities

28:47 Global Investing and GIFT City Opportunities

32:05 The Case for Debt, REITs and InvITs

33:09 Why Kotak Securities Rebranded as Kotak Neo

Are large cap stocks becoming too cheap to ignore? On The Core Report Weekend Edition, Govindraj Ethiraj and Shripal Shah of Kotak Neo discuss Indian stock market valuations and why investors are returning to large caps after the mid cap and small cap correction. Watch the full conversation to see what Nifty 50 earnings growth could mean for large cap valuations and portfolio diversification.

#Nifty50 #IndianStockMarket #LargeCapStocks #Investing #TheCoreReport #TheCore

Could Nifty returns disappoint over the next two years, even if Indian companies keep growing? In this episode of The Core Report Special Edition, financial journalist Govindraj Ethiraj speaks with Amar Ambani, Executive Director at YES Securities, about the Indian stock market outlook, opportunities beyond the Nifty 50 and what investors need to consider before committing money for the long term.

Amar Ambani explains why he expects single-digit Nifty returns over the next one to two years despite seeing signs of an oversold market. He discusses how foreign investor selling, elevated bond yields and competition for global capital could constrain large-cap stocks. For investors willing to look three to five years ahead, however, he believes valuations offer room for selective buying.

The conversation explores why established businesses such as Asian Paints, Reliance Industries and Jubilant FoodWorks can face pressure on their stock prices for different reasons. From rising competition and investment cycles to weak sentiment, Ambani examines why a strong business does not automatically make an attractive investment. He also explains why he expects stock picking in mid-cap and small-cap companies to matter more when benchmark returns are modest.

Where could opportunities emerge? Amar Ambani discusses banking stocks, consumer durables, power, defence and quick-service restaurants. He examines the recovery in appliance demand, the outlook for consumer spending and how AI data centres and electric vehicles could increase electricity demand. The discussion also considers whether competition among global AI companies could bring renewed attention to Indian businesses with earnings growth and healthy returns on capital.

What could derail that outlook? Amar Ambani identifies rupee depreciation, sustained foreign portfolio outflows, elevated crude oil prices and geopolitical uncertainty as risks. He explains why investors should retain sufficient liquidity, avoid borrowing against shares to increase exposure and approach equity investing with a five-year horizon.

At the heart of the conversation is a question for anyone concerned about Nifty returns. Should investors wait for a clear market recovery, or selectively buy before a trigger emerges? Amar Ambani shares how he evaluates sector growth, promoter quality, corporate governance, operating cash flow, return on capital and valuations when looking for long-term investment opportunities.

Chapters:

00:57 Amar Ambani on India's Stock Market Outlook

01:53 Why Indian Equities Are Looking Oversold

06:43 Why Leading Stocks Are Trading at Multi-Year Lows

09:17 Can Large-Cap Stocks Deliver Strong Returns Again?

09:34 Why the Next Two Years Could Be a Stock Picker's Market

11:57 Can Domestic Investors Offset Foreign Selling?

13:41 Where Are the Opportunities in Mid and Small Caps?

13:50 Why Banks and Consumer Durables Look Attractive

15:33 Power, Defence and the Next Investment Opportunities

17:15 India's Consumer Demand and Spending Outlook

19:20 Corporate Earnings and the Growth Outlook

20:56 Are Strong Fundamentals Enough to Lift Stock Prices?

21:34 Geopolitics, Crude Oil and Risks to Indian Markets

23:11 Rupee Depreciation and Foreign Capital Flows

24:32 How Should Investors Build Their Portfolios?

25:46 Why Investors Need a Three-to-Five-Year Horizon

26:45 What Makes a Company Worth Investing In?

27:04 How to Evaluate Promoters, Cash Flows and Valuations

29:31 Final Outlook: Selective Buying in an Oversold Market

Watch the full conversation for a deeper understanding of the Nifty 50 outlook, stock selection and long-term investing in India. Subscribe to The Core Report for conversations on business, the Indian economy and financial markets with Govindraj Ethiraj.

#Nifty50 #IndianStockMarket #Investing #TheCoreReport #TheCore