India’s equity markets are caught in a tug-of-war between a long-awaited earnings recovery and rising macroeconomic anxieties, according to Trideep Bhattacharya, Chief Investment Officer – Equities at Edelweiss AMC.

In an interview with CNBC-TV18, Bhattacharya highlighted that the recent quarterly results season broke a prolonged dry spell, delivering much-needed earnings upgrades for the first time in nearly 18 months. He attributed this positive shift to supportive government initiatives and a favourable macro environment, which have underpinned the market's strength.

“This improvement has contributed to the market’s recent buoyancy,” he noted.

However, this optimism is being counterbalanced by renewed investor nervousness. Bhattacharya pointed specifically to the uncertainty and delays surrounding a potential India-US deal, which is creating lingering geopolitical concerns. This clash between improving corporate fundamentals and external uncertainties, he suggested, has left the market in a “balanced but cautious” position.

While acknowledging that sharp intraday weakness in the Indian rupee added to recent discomfort, Bhattacharya emphasised that the primary trend to monitor remains the trajectory of corporate earnings. “The direction… has finally begun turning upward,” he stated, implying this could be the more enduring driver.

Shifting focus to the new-age economy, Bhattacharya commented on the growing list of platform companies—spanning consumer tech, food delivery, and home services—now available to public market investors. He characterised their valuations as “generally expensive” and revealed that Edelweiss AMC has turned more selective in its approach.

“Our assessment centres on how close these companies are to achieving profitability and whether management teams have a credible roadmap to get there,” he explained.

He added that competitive intensity in these sectors has resurged, as previously fund-starved unlisted players have re-entered the fray. This has led to renewed pricing pressure and extended the path to profitability for many firms.

In light of these dynamics, Bhattacharya confirmed that the fund house, which managed assets worth ₹3.49 crore as of October 31, 2025, has adopted a more cautious stance in allocating capital to this segment.