India's Earnings Breadth Widens as Valuations Improve Amid Investor Return

A report says Indian companies had one of their strongest profit periods in several years.

Profits for large, mid-sized and small companies all grew, with smaller companies seeing especially strong growth.

This helped analysts raise some of their expectations for the financial year.

Indian shares are still not cheap everywhere, but large companies look more reasonably valued than before.

Indian stocks also became less expensive compared with stocks in other emerging countries.

Foreign investors returned to Indian markets in August, and Indian institutions continued buying shares.

Mid-sized and smaller companies gained even though the Nifty 50 index fell.

The report linked the broad gains to stronger investment activity in the economy.