Optimism permeates Dalal Street as projections point to a powerful 2026 debut for Indian equities, anchored by the Union Budget’s promise of unwavering policy direction.
Last year’s 15%+ returns masked headwinds like monsoons and supply disruptions, showcasing market maturity. Bank credit growth at 13%, NPAs at multi-year lows, fortify financials.
Budget expectations: Simplified tax slabs, higher standard deduction, and R&D incentives for startups. Infra pipeline worth $1.4 trillion through 2025 will spill into FY26, benefiting cement to steel.
‘Domestic cycles are aligning perfectly,’ says veteran analyst Neha Kapoor. Rising capex, private investments at 30% of GDP, and export growth to $800 billion herald acceleration.
External factors—China slowdown, US elections—could stir volatility, yet India’s neutral geopolitics and vaccine diplomacy enhance appeal.
Mutual fund AUM nears ₹60 lakh crore, with equity share at 40%. Women investors up 20%, diversifying portfolios.
Post-budget, watch PSU banks, logistics, and renewables for 20-30% upside. Sensex 85,000-95,000 range likely. India’s growth engine revs up, policy stability as the turbocharger.