The Indian equity market has continued to lag global peers so far this year. The Nifty is down about 3% year-to-date in dollar terms. Nomura, however, believes the risk-reward for Indian equities remains favourable. On the earnings front, the brokerage sees low risk to near-term profit expectations, even after India Inc took a hit from labour code-related provisions in Q3FY26. Here is why Nomura expects corporate profits to grow at a healthy pace over the next two years, with earnings seen rising 16% in FY27 and 14% in FY28. #1. Recovery in nominal GDP, capex to aid earnings growth: Nomura Nomura highlighted that the aggregate profit after tax of 255 companies, under their research universe, grew 7.8% year-on-year (YoY) in Q3FY26.