Core Viewpoint - Indian equity markets are expected to deliver positive earnings surprises over the next one to two years, particularly in the banking, manufacturing, and auto-linked sectors, despite recent volatility in headline indices [9]. Banking and Financial Services - Banking and financial services are identified as the backbone of India's economic expansion, with expectations of increased demand for housing loans, retail credit, and corporate borrowing as the economy moves towards a $7–8 trillion target [3][9]. - Private sector banks are preferred, with select public sector banks also seen as valuable. There is growing foreign institutional investor interest, indicated by significant transactions involving banks like RBL Bank and IDFC First Bank [9]. Manufacturing Sector - Manufacturing is highlighted as a key theme, with strong capital expenditure (capex) intentions from companies, benefiting the entire ecosystem as capex cycles gain momentum [6][9]. - The opportunity in manufacturing extends beyond original equipment manufacturers (OEMs) to the entire supply chain [6]. Small and Mid-Cap Stocks - Small- and mid-cap stocks have faced a challenging period, described as "death by a thousand cuts," but are expected to recover as market stability improves over the next two to three months [7][10]. - A broader recovery in this segment is anticipated to be catalyzed by progress on trade agreements, with expectations for a comprehensive India-US trade deal [10]. Market Valuations and Growth Expectations - The Nifty index is currently trading at approximately 24 times earnings, close to its long-term average, with the market factoring in 10–12% earnings per share (EPS) growth over the next two years, although there may be upside surprises [1][9]. - Government measures such as tax cuts and initiatives to spur consumption are expected to support earnings momentum across various sectors [2][9].

Core Viewpoint - Sempra's management is increasing focus on Texas, which is expected to drive earnings growth in the medium term according to Goldman Sachs [1] Group 1: Analyst Upgrades and Price Target - Analyst Carly Davenport upgraded Sempra's rating from Neutral to Buy and raised the price target from $88 to $106 [2] - The Texas utility, Oncor, is well-positioned to benefit from growth in data center load and higher business, infrastructure, and population growth in the state [2] Group 2: Regulatory Environment and Capital Investments - Oncor is expected to benefit from a "constructive" regulatory environment [3] - Management plans to increase capital investments in the Texas subsidiary by at least 30%, indicating potential upside [3] Group 3: Earnings Growth Projections - Expected EPS growth for Oncor has been raised to approximately 21% for the period 2025-2029, up from 15% previously, while the consolidated company's EPS growth is now projected to exceed 10%, compared to around 9.5% before [4] - Sempra's shares rose by 0.81% to $92.97 at the time of publication [4]