Tahir Badshah, CIO of Invesco Mutual Fund, warns that FY27 earnings growth expectations may be halved to 6-7%, adjusting market valuations to an average of 19 times forward earnings. He projects a potential further downside of 7-8% for the Nifty and 10% for the broader market. Badshah advises focusing on companies with strong pricing power and expresses a constructive view on the undervalued IT sector, which could benefit from mean reversion.
