India Inc. is navigating a decisive turning point as the earnings landscape shifts from a period of persistent downgrades toward a more stable growth trajectory. Recent market data indicates that the aggressive pace of earnings cuts seen over the past year has finally slowed, with selective upgrades now emerging across key benchmark indices. The Nifty 50 currently trades near the 25,500 level, reflecting a recovery phase as corporate performance begins to align with market valuations. While overall earnings growth for the broad market is projected at a steady 12% to 14% for the upcoming cycle, certain sectors are showing much stronger internal momentum. The banking and financial services sector remains the primary engine of growth, contributing nearly 46% of the incremental earnings for the index. This performance is supported by resilient credit demand and improving asset quality, even as the sector manages a normalization in margins after several high-growth years. Pharma and healthcare are also seeing a significant uptick, with some companies reporting year-on-year profit jumps as high as 50%. This sector is benefiting from product relaunches and a robust export environment, making it a preferred defensive play for institutional investors. The metals and mining space is entering what many analysts describe as a structural bull phase. While global volatility exists, domestic demand for steel and base metals like copper remains firm, driven by a 10% to 11% increase in infrastructure and capital expenditure allocations in the latest budget. In contrast, the IT services sector continues to face a complex environment. While large-cap tech companies are seeing record order inflows, the rapid integration of Artificial Intelligence is forcing a recalibration of traditional business models. This has led to a divergence in performance, with high-skill digital segments outperforming legacy services. Market sentiment is currently bolstered by strong domestic institutional support, with local funds absorbing foreign outflows to provide a floor for valuations. As the market enters the final quarter, the focus has shifted from managing "earnings misses" to identifying quality large-cap stocks that offer fundamental earnings acceleration. [Recent Nifty and Sensex Market Performance](https://www.youtube.com/watch?v=AYlxlyWkcVY) This video provides a timely update on how the Indian markets are reacting to the latest earnings and budget news as of late February 2026. http://googleusercontent.com/youtube_content/0