Indian equities could be set for a re‑rating as second‑half earnings accelerate and domestic institutional capital returns, a report said on Friday.

The report from Omniscience Capital said that the consolidation phase should be treated as an accumulation window rather than as an opportunity to chase recent performance.

The firm said that opportunities lie in businesses benefiting from structural capital expenditure, energy transition and infrastructure development.

The report cautioned that pockets of the mid‑ and small‑cap segments remain richly valued and urged selective deployment into high‑quality growth businesses available at discounted valuations.

Opportunities are concentrated in businesses exposed to sustained growth and operating leverage but available at favourable valuations, the report noted.

Key areas include banking and financial services, infrastructure and power, and business services, supported by resilient credit growth, rising electricity demand and a recovery in corporate capex.

The moderation in Indian equity valuations has led to renewed institutional interest, with foreign investors turning net buyers on multiple occasions after a two-year moderation in valuations.

Domestic fundamentals remain supportive, with FY27 real GDP growth estimated at around 7 per cent even though crude oil prices call for caution.

With direct, retaliatory military actions between the US and Iran, the hope for a diplomatic resolution through a longer-term peace deal has taken a severe blow, the report forecasted.

“Multi-year forward earnings execution is fully priced in, leaving prospective returns barely near the discount rate while exposing investors to severe de-rating risk,” said Ashwin K. Shami, President & Chief Portfolio Manager, OmniScience Capital.

The firm saw a valuation disconnect across market capitalisations, with Nifty Smallcap 250 and Midcap 150 trading at trailing P/E multiples of around 34-fold and 30-fold, respectively, compared with around 20-fold for Nifty 100.

Global equity markets continue to contend with elevated risk-free rates, with US 10-year Treasury yields near one-year highs of 4.6 per cent-4.7 per cent, while geopolitical tensions have added volatility to crude oil and commodities. The US Federal Reserve’s policy decision on September 16 remains a near-term factor for Treasury yields and global risk appetite.

New Delhi, Sep 10: Inflows into gold Exchange-Traded Funds (ETFs) surged nearly 67 per cent in August 2026 as investors increased their exposure to the precious metal amid a sharp rise in domestic gold prices, according to the latest data released by the Association of Mutual Funds in India (AMFI) on Thursday.

Gold ETFs received net inflows of Rs 2,596.70 crore in August, compared with Rs 1,559 crore in July. The category recorded positive inflows for the third consecutive month, reflecting continued investor interest in gold-linked investment products.

The increase in gold ETF investments came as domestic gold prices on the Multi Commodity Exchange (MCX) rose 7.7 per cent during August, making the precious metal one of the key investment avenues during the month.

Silver ETFs also continued to attract investors, recording net inflows of Rs 1,270.63 crore in August.

In the equity mutual fund segment, actively managed equity schemes saw net inflows rise to Rs 29,328.62 crore in August from Rs 24,697.39 crore in July, indicating sustained investor participation despite fluctuations in the broader market.

Overall, the mutual fund industry recorded net inflows of Rs 41,353.60 crore in August, significantly lower than the Rs 2.35 lakh crore recorded in July. The sharp month-on-month decline was largely influenced by flows in the debt fund segment.

Systematic Investment Plan (SIP) contributions, however, continued to strengthen and reached a record high of Rs 32,297 crore in August, compared with Rs 31,961 crore in July. The steady rise in SIP contributions highlights continued retail investor participation in mutual funds.

Debt funds registered a net outflow of Rs 8,127.32 crore in August, reversing from a net inflow of Rs 1.87 lakh crore in July.

Meanwhile, the mutual fund SIP inflows increased marginally month-on-month to a record high of Rs 32,297 crore in August, compared with Rs 31,961 crore in July. On a year-on-year basis, SIP inflows rose 14 per cent from Rs 28,265 crore recorded in August 2025.

Mumbai, Sep 9: Maharashtra Chief Minister Devendra Fadnavis-led high-level committee on Wednesday decided to advance the upcoming sugarcane crushing season for 2026-27 to October 15.

The state government’s decision comes when soaring sugar prices during the festive season have strained household budgets across Maharashtra.

The state government hopes the commencement of sugarcane crushing season from October 15 instead of November 1 demanded by sugar factories will stabilise the market and ensure an adequate supply of sugar.

This marks an earlier rollout compared to previous operational years, following seasons that started on November 1, 2025, and November 15, 2024, respectively.

The meeting was attended by Co-operation Minister Babasaheb Patil, Deputy Chief Minister Sunetra Pawar, former Minister Dilip Walse Patil, along with legislators and representatives from factory associations.

The move comes as retail sugar prices jumped to Rs 70–75 per kg in August due to a domestic supply crunch caused by lower production last season.

Normally, the crushing season commences in November.

However, with major festivals like Navratri, Dussehra, and Diwali approaching—and following advisories from the Central government to top-producing states — the Maharashtra administration decided to begin operations nearly a month early to prevent further price spikes.

The proposed October 15 start date has, however, met with opposition from sugar mill owners and farmers.

Industry representatives said that starting the crushing process before November is financially disadvantageous for both factories and growers due to lower sugarcane maturity and sugar recovery rates at that time of the year.

Despite the pushback from millers, the state government remains focused on controlling inflation and stabilising supply before the peak festive period.

Maharashtra Cooperation Minister Babasaheb Patil said, “The decision to advance the sugarcane crushing season from October 15 was taken in the wake of festive season and also to avoid damage to the standing sugarcane.”

According to crop estimations prepared by the Agriculture Department and MITCON, the state expects sugarcane cultivation across 15.43 to 15.48 lakh hectares.

Total cane production is projected to reach 1,238 to 1,250 lakh metric tonnes (LMT), yielding an estimated 990 to 1,000 LMT of cane for crushing.

Net sugar production is anticipated to hover between 96.45 and 97.58 LMT at a net recovery rate of 9.75 per cent, after diverting nearly 15 LMT of sugar equivalent toward ethanol production.

Reviewing the performance of the preceding 2025–26 crushing season (as of August 31, 2026), official records revealed that 210 sugar mills (102 cooperative and 108 private) processed 1,045 LMT of sugarcane.

Minister Patil said that the arrears payable by the sugar mills towards Fair and Remunerative Price are of the order of Rs 200 crore.

He added that the state government is taking action against such mills for clearing the dues.

He told that these mills won’t be entitled to get crushing license for the upcoming season.