Indian stock markets are expected to show resilience in the coming months, according to Morgan Stanley, which anticipates that they will outpace emerging markets. Despite this optimistic outlook, recent data indicates that earnings downgrades have reached a 22-quarter low in Q3 FY25, with 44% of companies missing earnings estimates. This has led to a reduction in Nifty's earnings per share (EPS) forecasts for FY26 and FY27. While large-cap stocks have remained stable, mid-cap stocks have seen a year-on-year growth of 26%, in contrast to a 24% decline in small-cap stocks. The benchmark Nifty 50 index has fallen nearly 13% from its all-time high in September 2024, raising questions about its potential to reclaim the 26,000 mark by December 2025. Analysts remain positive about certain companies in the consumer durables sector, particularly Amber Enterprises and PG Electroplast, which have reported significant growth driven by strong demand.