Kotak Equities flags geopolitical risks even as Q4 earnings hold steady

Kotak Institutional Equities highlights geopolitical risks impacting India's macroeconomic outlook, particularly due to the unresolved West Asian conflict and potential weak monsoon effects. While Q4 earnings for FY26 have largely met expectations, the brokerage warns of rising valuations in certain sectors. The market is expected to focus on earnings momentum and macroeconomic trends following recent state elections, with a relatively election-free period ahead allowing the government to address economic challenges. Overall, Indian corporate earnings may withstand geopolitical tensions better than the broader economy.