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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.
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.
With most macro overhangs now largely behind us, investor focus is likely to shift toward earnings progression across sectors in India, said Trideep Bhattacharya.
India- US trade deal secures a massive price advantage for our engineering, textile, and pharma sector, said Narnolia's Shailendra Kumar.
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.
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.
Deepan Kapadia believes earnings recovery appears gradual but increasingly broad-based. December quarter results indicate margin stabilisation and improving demand in financials, industrials, and select consumption segments.
Given the global geopolitical backdrop, investors are not expecting aggressive stimulus. Instead, clarity on capex continuity, sectoral incentives, and fiscal credibility would be more reassuring, said Amnish
The current expectations are of double-digit earnings growth in 2026 as the base is low. If earnings growth trajectory undershoots then Indian equities will derate further, said Naveen Kulkarni.
India must achieve a ‘Golden Mean’ between fiscal prudence and growth-focused stimulus in Union Budget, said Himani Shah of Alchemy Capital Management.
Unless earnings growth improves meaningfully and catches up with expectations, there remains scope for further time correction or price correction in overvalued mid cap stocks, said Rohit Sarin of Client Associates.
The Union Budget is likely to be reform-oriented, though within tight fiscal constraints, said Jaspreet Singh Arora of Equentis Wealth.
In the current environment, steady reforms combined with clearer earnings visibility will be crucial for reviving foreign investor participation, said Kotak Life's Radhavi Deshpande.
Prosenjit Ganguly expects overall growth trajectory will continue to be well supported & tread a path of above par economic growth irrespective of intermittent shocks
Real estate’s ripple effect on more than 200 other allied industries such as cement, steel, building materials, services, logistics, etc has the ability to create millions of jobs directly and indirectly, said Pankaj Pandey.
