Despite volatility, this brokerage says India's growth story 'remains resilient'; check short-term market outlook

Brokerage bullish on India growth story.

• Market volatility spikes amid West Asia tensions and oil price hike.
• India's macro fundamentals strong despite global uncertainty.
• Long-term outlook for Indian equities stays positive.

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The domestic equity markets have entered a phase of heightened volatility amid rising geopolitical tensions in the West Asia and a surge in crude oil prices.

These developments have created short-term uncertainty across global financial markets. However, India’s macroeconomic fundamentals remain resilient, supported by strong domestic consumption, sustained infrastructure spending and healthier corporate balance sheets, according to a report by PL Wealth, the wealth management arm of PL Capital (Prabhudas Lilladher).

In its latest report titled Market Outlook – March 2026, the brokerage said market volatility is likely to remain elevated in the near term as investors continue to assess geopolitical developments and movements in commodity prices.

Despite the current uncertainties, the broader macroeconomic environment in India continues to show resilience, reinforcing the long-term investment case for Indian equities, it added.

Global markets have seen increased volatility in recent weeks as tensions in the West Asia intensified, pushing crude oil prices higher and raising concerns over inflation and global growth prospects.

As India is a major importer of energy, a sustained rise in oil prices could influence inflation expectations and currency movements. However, market experts said such global shocks have historically led to short-lived market corrections rather than prolonged downturns, particularly in economies supported by strong domestic demand and policy stability.

According to the report, in the short term (0–6 months), equity markets may remain range-bound as investors track global macroeconomic developments and geopolitical risks. A cautious approach with gradual capital deployment may help investors navigate this phase.

Over the medium term (6–24 months), improving corporate earnings and continued infrastructure spending are expected to support market performance, especially in sectors linked to the investment cycle such as financials, infrastructure and industrials.

Over the longer term (24–60 months), the report said India’s structural growth story remains intact. Rising consumption, expanding financial markets, digital transformation and infrastructure development are expected to support sustained economic expansion.

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