New Delhi [India], January 25 (ANI): India enters the yr 2026 with a comparatively robust macroeconomic footing, at the same time as world markets stay formed by coverage uncertainty, geopolitical dangers, and uneven progress throughout areas, in accordance with a report by Prabhudas Lilladher.
After a yr of consolidation in 2025, the outlook for India is finest described as secure, selective, and earnings-driven, with home demand performing as the first anchor for progress.
Economic progress is anticipated to stay among the many highest globally.
India’s GDP is projected to increase by round 6.5-7.0 per cent within the present monetary yr 2025-26, supported by resilient consumption, providers exports, and sustained public capital expenditure.
Inflation has moderated meaningfully and is anticipated to remain inside the Reserve Bank of India’s consolation band (2-6 per cent), permitting financial coverage to stay growth-supportive, it mentioned. Crucially, India’s earnings progress outlook stays intact, supported by bettering steadiness sheets, declining leverage, and higher return ratios throughout sectors.
While aggressive fee cuts seem unlikely, liquidity circumstances are anticipated to remain snug, underpinning credit score progress and funding exercise.
Global developments, nevertheless, will proceed to affect near-term sentiment. Markets are carefully watching indicators from the US Federal Reserve beneath new management.
‘Although the macro image coming into 2026 is extra balanced, we anticipate a risky yr the place market strikes shall be dictated by earnings execution, the power of home demand, and evolving coverage readability. Globally, near-term sentiment will hinge on indicators from the US Federal Reserve beneath new management, notably across the timing and tempo of fee changes, whereas coverage normalisation in Japan stays an essential variable influencing cross-asset volatility,’ the report learn.
Within equities, the market setting in 2026 is anticipated to be much less liquidity-driven and extra earnings-driven. Large-cap shares are prone to stay in focus, providing higher earnings visibility and stronger steadiness sheets amid volatility. Financials, capital items, defence manufacturing, autos and choose infrastructure-linked sectors are positioned to profit from the continued home capex cycle and bettering credit score circumstances. Consumption is anticipated to broaden progressively, with rural demand bettering on the again of a standard monsoon and secure meals inflation, although stock choice shall be crucial.
Any progress on India-US commerce negotiations could be a optimistic for export-orientated sectors resembling IT, prescribed drugs, speciality chemical substances and manufacturing, it added. (ANI)