From FY21 to FY24, the Nifty 50 experienced a strong 24% CAGR in earnings growth. However, in the past four to five quarters, this pace has slowed considerably, with growth dropping to mid to high single digits.
Rakshit highlights that this steep moderation in earnings, coupled with valuations touching 21–22 times FY26 PE, has created a challenging environment for investors. Hence, market breadth may no longer work; selective stock-picking becomes key.
