• Earnings growth divergence: Nifty 50 earnings are projected to grow 10–12%, while small-cap earnings are expected to rebound sharply to a 30% CAGR over the next two years off a low base.
• Index and revenue outlook: Corporate revenue growth is projected at 17% alongside 12–13% nominal GDP growth, though heavy supply from IPOs, QIPs, and block sales will keep a cap on broad index levels.
• Financials strategy: The model portfolio is underweight large private banks—reallocating 100 basis points from HDFC Bank, ICICI Bank, and SBI into smaller banks like RBL and AU—while remaining overweight on NBFCs and capital market platforms.
• Sector allocations: Portfolio weight shifted 700 basis points from large-caps to mid- and small-caps, favoring consumer discretionary, industrials, and autos, while maintaining zero weight on FMCG staples and an underweight stance on IT.