New Delhi, Aug. 23 -- India Inc. has just delivered one of its best earnings seasons in recent quarters. Corporate results have comfortably exceeded expectations, revenue growth has accelerated, and earnings upgrades have begun to reappear. The Nifty50 led a 17% YoY growth in PAT, much above the 10% estimated. Yet, despite these encouraging signals, investors remain cautious, with markets swinging between optimism and nervousness.

Despite the strong vote of confidence in the resilience of corporate India, with 33 Nifty50 constituents surpassing estimates against 17 misses, the disconnect raises an important question: what is preventing a rally in the market? The earnings recovery was not confined to a handful of sectors. Metals emerged a...