Get ready for an exhilarating ride: Indian stock markets are forecasted to kick off 2026 with vigor, courtesy of policy steadiness from the General Budget. This comes at a time when global markets grapple with recession fears.
2025 was a tale of triumphs—Sensex up 14%, Nifty rewarding patient investors amid corrections. Underpinning this was India’s economic story: manufacturing PMI above 58, services booming, and unemployment dipping to 6.5%.
The budget narrative centers on ‘Viksit Bharat’—developed India vision. Anticipated thrust areas include skill development, urban infra, and green transitions, injecting ₹12 lakh crore in capex.
‘Policy predictability is the biggest draw for FIIs,’ opines Amit Patel, Fund Manager at a top AMC. With EPFO inflows steady and gold loans rising, liquidity remains ample.
Risks? Election cycles in key states and oil price volatility. But with inflation cooling to 4.2%, RBI has room for rate cuts, aiding debt-heavy sectors.
Technology integration in governance and Aadhaar-linked subsidies will streamline expenditures, freeing resources for growth. Expect Nifty to breach 27,000 in H1 2026.
From EVs to semiconductors, thematic plays will shine. Investors, position for the budget bonanza—stability breeds prosperity in India’s vibrant markets.