Daijiworld Media Network- New Delhi

New Delhi, May 13: JP Morgan's latest outlook for MSCI India has revealed a promising growth trajectory for sectoral earnings per share (EPS) in 2025 and 2026, with India's Communication Services sector poised to deliver the strongest growth.

According to the financial giant’s projections, Communication Services is set to dominate with an impressive nearly 45% EPS growth in 2025, a figure that remains steady into 2026. This makes the sector the most promising across all industries for both years. While the previous 2025 estimate was slightly higher, the outlook remains solid, suggesting strong confidence in the sector's performance.

Following closely, the Materials sector is expected to see a substantial 30% growth in EPS in 2025, marking a rise in optimism compared to earlier projections. The sector, comprising 7.5% of the MSCI index, is forecasted to contribute significantly to overall earnings growth.

Industrials are also projected to perform well, with EPS growth expected to exceed 20% in both 2025 and 2026. Although the 2026 forecast has slightly moderated, the 2025 outlook remains robust, signaling a positive trend.

Other sectors such as Financials and Consumer Discretionary are projected to grow between 13% and 18% over the next two years, reflecting steady performance.

In the healthcare sector, EPS growth of around 10% is expected despite its smaller index weight of 5.7%, while Utilities, Technology, and Energy sectors are anticipated to experience more modest single-digit growth, making them the laggards in this earnings forecast.

Overall, JP Morgan’s projections indicate that the MSCI India index will grow by 13% in 2025 and 15% in 2026, pointing to a stable macroeconomic environment for Indian corporates.

Investors should watch Communication Services, Materials, and Industrials, as these sectors are expected to drive the country’s earnings growth in the coming years.