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JP Morgan's latest outlook on MSCI India earnings growth estimates signals a positive trend in sectoral earnings per share (EPS) for 2025 and 2026.
The data, released by the financial major, shows that India's sectoral earnings are set to grow steadily, with some sectors poised to deliver standout performances over the next two years. According to the JP Morgan chart, Communication Services is expected to deliver the strongest EPS growth among all sectors. For 2025, the grey bar for this sector touches nearly 45 per cent, and the green bar for 2026 maintains this level, making it the most promising sector in both years. The previous estimate (grey diamond) for 2025 was slightly higher, showing some moderation, but the outlook still remains solid. Similarly, the 2026 estimate (green diamond) has remained stable, showing consistency in analyst expectations. Materials is another sector showing significant growth potential. EPS is projected to rise by about 30 per cent in 2025. The estimates have improved compared to projections made three months ago, indicating rising optimism. The Materials sector, with a sector weight of 7.5 per cent in MSCI, could contribute meaningfully to overall earnings growth. Industrials also show strong performance, with EPS growth of over 20 per cent expected in both 2025 and 2026. While the latest 2026 forecast is slightly lower than the earlier estimate, the 2025 outlook remains firm, represented by stable green and green-diamond markers. The Financials and Consumer Discretionary sectors follows, with projected EPS growth between 13 per cent and 18 per cent over the next two years. Healthcare, despite having a smaller index weight of 5.7 per cent, is also expected to post EPS growth of around 10 per cent in both years. On the other hand, sectors like Utilities, Technology, and Energy are expected to see only low single-digit growth. These sectors remain the laggards in the earnings forecast. The overall MSCI India index is projected to grow at around 13 per cent in 2025 and 15 per cent in 2026, reflecting a stable macro outlook for Indian corporates. JP Morgan's projections suggests to keep an eye on Communication Services, Materials, and Industrials, as these sectors are expected to drive India's earnings growth in 2025 and 2026. (ANI)
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