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With Indian firms already diversifying into high-growth markets like the EU, US and UK, Pranab Uniyal doesn’t anticipate a long-term structural threat to India’s textile sector.
The government’s focus on stimulating domestic consumption is expected to enhance capacity utilisation levels, which should, in turn, catalyse a meaningful pickup in private capital expenditure over the next 12–18 months, said Rakesh Vyas.
The Indian IT sector is likely to witness moderate growth in FY26, with earnings stabilizing after a period of strong expansion, said Anirudh Garg.
The textile sector in India is relatively well placed as compared to other countries following the announcement of the India-US trade deal. Lower tariffs will improve the competitiveness of the sector and support export-oriented players, said Umeshkumar Mehta.
Divam Sharma expects volatility to persist in the short term, but the medium-term outlook for Indian equities remains firmly positive.
Third quarter earnings showed sector-level divergence where overall the good revenue growth for sectors such as financial services, industrials, healthcare, auto and business services, said Ashwini Shami.
Traders should refrain from aggressive dip-buying in IT stocks and consider using rallies toward resistance as opportunities to sell until momentum improves, Sudeep Shah said.
Dinshaw Irani doesn't expect the RBI to undertake any rate cuts in the next couple of meetings as even the previous rate cuts have not resulted in the G-Sec yields coming down.
Ankita Pathak believes valuations remain high as compared to the EM basket and return of FPIs would be crucial for a based recovery of the market.
As far as earnings growth is concerned, given the low base, double-digit seems very likely. But valuations are demanding of more, perhaps closer to mid-teens which is likely but not a given by any assessment, said Pramod Gubbi.
On the retail side, many new investors who enter the market do not have the capacity to hold or patience if they do not see returns for a year or two. That is already showing up in lower trading volumes in recent months, said Raghvendra Nath.
The ongoing results season has offered some comfort on earnings stability, with the potential for recovery in FY27. Valuations are supportive, both absolute and relative to other EMs, but earnings delivery will drive flows, said Rahul Singh of Tata AMC.
The India–US deal reinforces India’s credibility as a reliable manufacturing and export partner at a time when global companies are actively diversifying supply chains, said Sonam Srivastava.
With most macro overhangs now largely behind us, investor focus is likely to shift toward earnings progression across sectors in India, said Trideep Bhattacharya.
Buying on dips offers a superior risk-reward, while avoiding aggressive trades into the gap and keeping leverage low is advised, said Ashish Kyal.
According to Sachin Sawrikar, the impact of the India-US trade deal is likely to be incremental and sector-specific rather than a sweeping catalyst for overall earnings growth.
India- US trade deal secures a massive price advantage for our engineering, textile, and pharma sector, said Narnolia's Shailendra Kumar.
It would be crucial for the markets to go back inside the original 500-point trading zone created between 26,200 and 25,700. If this happens, then the primary trend would stay intact, said Milan Vaishnav.
One important takeaway is that the government appears done with direct tax tinkering for now. There are no fresh giveaways or populist tax cuts, which enhances predictability and reduces uncertainty for both domestic and global investors, said Arihant Bardia of Valtrust.
In the context of a sharp market correction and elevated global uncertainty, the government has struck a balance between supporting growth and maintaining fiscal credibility, said Right Horizons' Anil Rego.
The budget showcased an economy which has fiscal discipline and is likely to become the 3rd largest economy in the world within the next couple of years, said OmiScience's Vikas Gupta.
Looking ahead, volatility is expected to pick up sharply over the next 2–3 sessions, with the Union Budget 2026 scheduled to be presented by the Finance Minister on February 1.
A credible path for fiscal consolidation, alongside targeted social spending, would reinforce macro stability and investor confidence, said Ross Maxwell.
If the budget is able to channelize expenses in right areas such as productive capex or demand stimulation rather than transfer payments or administrative expenses, the market will respond positively, said Gautam Duggad.
A broad, consumption-oriented stimulus in Union Budget cannot be completely ruled out, but it is unlikely to be aggressive or front-loaded,said INVasset’s Anirudh Garg.
