New Delhi, Nov. 6 -- The US midterm election outcome could ease crude oil prices and improve India's macroeconomic stability, while Q2FY27 corporate earnings may bolster investor confidence in domestic equities, according to a report by Kotak Institutional Equities.

Kotak noted that the Nifty 50 companies reported a 19 per cent year-on-year increase in net profits during Q2FY27, with similar growth trends observed in EBITDA. The report added that the positive trend was also reflected in net profits and EBITDA after adjusting for the oil, gas and consumable fuels sector.

"We expect FY2027E and FY2028E net profits of the Nifty-50 Index to grow 20%," the report said.

As per Kotak, market's risk-reward balance remains "favourable," with va...