ANI New Delhi

The domestic companies are expected to register earnings growth as high as that in the United States over the next 12 months, supported by attractive macro fundamentals, supportive monetary policy positioning and robust domestic demand highlighted a report by Franklin Templeton, a global investment management organization.

The report stated that the global investment landscape is evolving and changes are creating new opportunities in regions and sectors that have so far underperformed. It noted that improving profitability and more attractive valuations, along with expected monetary policy easing across the world, are setting the stage for stronger performance outside the United States.

It stated, "Over the next 12 months, earnings growth is expected to be as high in emerging markets as in the United States. That outcome owes much to the macroeconomic growth impulse delivered by monetary easing across the emerging complex". According to the report, the implication of these shifts is that the leadership of US markets, driven recently by large capitalization growth, technology and artificial intelligence (AI) companies could broaden sustainably.

The report added that prospects appear to be improving outside the US as well, with emerging markets like India showing strong potential. It also stated that even Europe may participate, supported by both monetary and fiscal easing measures. This could lead to an upturn in the European growth and earnings cycle in 2026.