The Indian auto sector saw varied results in Q4FY25. Two-wheeler companies performed well. Some vehicle makers did better than others. Tyre and auto parts companies faced profit declines. Tata Motors, Apollo Tyres, and Tube Investments struggled. TVS Motor, Eicher Motors, and Bajaj Auto showed strong growth. Overall, vehicle makers outperformed component suppliers. Maruti Suzuki and Mahindra are stocks to buy.

Smallcap stocks are experiencing a resurgence, mirroring the gains seen in 2024, with the BSE Smallcap Index significantly outperforming the Nifty. While economic recovery and liquidity inflows fuel this rally, experts caution about stretched valuations and the need for selective stock picking based on strong fundamentals.

Nomura observed that, despite overall earnings estimate reductions, India’s Q4 season saw more companies outperform than underperform. Since March 2025, consensus earnings estimates for FY26 and FY27 have been lowered by 2.3% and 1.4%, respectively.

According to the International Monetary Fund, India is projected to be the fastest-growing major economy in 2025 and 2026. Over the past 30 years, Indian markets have delivered USD-based returns at a 7% CAGR, second only to the U.S. Notably, this performance has been driven primarily by earnings growth rather than valuation increases, distinguishing India on the global stage.

India's top 500 companies achieved a record-breaking ₹15 lakh crore in net profit in FY25, driven by strong performances in agriculture, chemicals, and telecom, despite widespread earnings downgrades. While FY26 earnings forecasts have been revised downward, analysts remain optimistic about sectors like defence and telecom, anticipating continued growth and resilience in the face of economic uncertainties.

Billionaire investor Raamdeo Agrawal predicts the Sensex will reach 1.5 lakh by 2030 and 3 lakh by 2035, driven by India's economic growth. Citing historical data, he highlights the market's 15% CAGR over the past 45 years.

Morgan Stanley has set a Sensex target of 89,000 by June 2026, citing India's structural growth, strong earnings outlook, and stable policy environment. In a bull case, Sensex could hit 1 lakh. The firm is bullish on financials and industrials, with stock-picking expected to outperform macro-driven strategies.

Railway stocks have surged mysteriously alongside defence counters post Operation Sindoor, despite no new capex push or policy trigger. Experts suggest this may be sentiment-driven, with momentum chasing outweighing fundamentals. While some draw a strategic defence-railways link, others caution against frothy valuations and retail exuberance. The rally echoes past manias, prompting many institutional investors to stay cautious.

Twenty-seven equity mutual fund schemes have delivered over 25% CAGR in both three- and five-year periods, with HDFC Mutual Fund leading the pack. Funds like Quant Small Cap, Franklin India Prima, and Motilal Oswal Midcap stood out for their stellar performance. The analysis spans all equity categories and is based on regular, growth options—not a recommendation.

ICICI Prudential Bluechip Fund, a leading large-cap fund with substantial AUM, has consistently outperformed its benchmark and category average over various periods, showcasing resilience and strong long-term performance. Experts highlight its disciplined approach and stock-picking skills, making it a suitable option for investors seeking stability in volatile markets.