Mumbai, Maharashtra: Shrikant Chouhan, Head of Equity Research at Kotak Neo, said Indian equity market valuations appeared attractive relative to earnings, with valuations approaching 16 times projected FY28 earnings. However, he cautioned that a sustained rise in crude oil prices could put pressure on quarterly corporate results.

Shrikant Chouhan on Market Valuations

Chouhan said his assessment of market valuations and earnings suggested that current levels were attractive. He highlighted the market's valuation of nearly 16 times FY28 earnings as a potentially positive factor.

His comments focused on the relationship between stock market valuations and companies' expected earnings over the medium term.

#WATCH | Mumbai, Maharashtra: Shrikant Chouhan, Head of Equity Research at Kotak Neo, says, "While looking at the entire valuations and earnings of the market, we are of the view that we are at an attractive level, and we are very close to 16 times to the FY 28 earnings, which is something we can say is positive. At the same time, because of this consistent rise in crude prices, we can expect some pressure on the Q3 numbers... If there is a very short-term view, then it is better to focus on the levels of the market. But if there is a medium- to long-term view, then the focus should be more on the fundamentals..."

— ANI (@ANI) October 12, 2026

Rising Crude Oil Prices May Pressure Q3 Earnings

Chouhan warned that the consistent rise in crude oil prices could affect corporate performance and put pressure on third-quarter results.

Higher crude prices can increase costs for businesses that depend on oil and related products, potentially affecting profitability. The extent of the impact would depend on individual companies and their ability to manage rising costs.

Short-Term Levels vs Long-Term Fundamentals

Chouhan said investment analysis should depend on the time horizon being considered.

• Short-term outlook: Investors focusing on the immediate market trend should pay attention to market levels.

• Medium- to long-term outlook: Fundamentals should receive greater attention, including valuations and corporate earnings prospects.

His comments highlighted the importance of distinguishing short-term market movements from longer-term business performance.

Market Outlook

Chouhan's assessment combined a positive view of valuations relative to projected FY28 earnings with caution over the potential impact of rising crude oil prices on Q3 results. He emphasised market levels for short-term analysis and company fundamentals for a longer-term perspective.