The Nifty 50 slipped to 23,777.80 (down 119.91 points) and the Sensex fell to 76,112.50 (down 402.93 points).
DSP CIO Anish Tawakley says large-cap earnings growth has been modest for two years but expects it to pick up over a three-year horizon.
Gold on MCX dropped to Rs 1,52,189 per 10g (down Rs 578), while the rupee held near 94.45 against the dollar.
Indian large-caps have basically gone nowhere for two years, and the benchmarks are still feeling it. The Nifty 50 slid to 23,777.80, down 119.91 points, while the Sensex dropped to 76,112.50, down 402.93 points, as the broader correction dragged on. In an interview with The Economic Times, newly appointed DSP Asset Managers CIO Anish Tawakley argued that while these figures reflect real, current market weakness, his bullish three-year earnings call is explicitly a forward-looking projection, not a guarantee.
Spare Capacity Could Fuel the Next Earnings Cycle
Tawakley’s thesis rests on economic mechanics: demand is picking up while spare capacity, meaning under-utilised existing assets, remains in the system. That combination matters because it means the Reserve Bank of India doesn’t need to step in and curb demand to control inflation, allowing growth to run longer than it otherwise might. He acknowledged earnings growth for the Nifty 50 basket has been modest over the past two years, which explains the flat index performance, but expects the earnings outlook to turn positive over a three-year window, even if the market takes time to catch up to improving fundamentals.
What This Means for Your Portfolio and Wallet
For everyday investors, Tawakley’s framework is a reminder that index-level stagnation doesn’t always mean the underlying economy is broken, it can just mean earnings haven’t caught up yet. Elsewhere in the market, gold on the MCX fell to Rs 1,52,189 per 10 grams, down Rs 578, and the rupee held steady near 94.45 to the dollar, down just 0.05, signaling relatively contained currency volatility even as equities wobble.
Strategic Positioning & Defense Ideas
Tawakley’s contrarian, patience-driven approach echoes a broader lesson for retail portfolios: staying diversified across equities, gold, and cash rather than chasing short-term index moves can smooth out multi-year corrections like the one Indian large-caps are experiencing. Disclaimer: This analysis is for educational and informational purposes only and should not be construed as financial or investment advice.
What to Watch Next
Track upcoming quarterly earnings prints for signs that demand and spare capacity are translating into the earnings acceleration Tawakley expects, alongside any shifts in RBI policy stance. For the full interview, see The Economic Times.
