Indian investors are watching a bright rebound in corporate earnings this year, according to a new report from brokerage firm Antique Stock Broking. The firm believes that India’s domestic investment cycle will pick up again in the second half of the 2026 fiscal year, driven by policy support, lower interest rates and a steady flow of liquidity.
What’s keeping the market upbeat
Antique says the country’s strong fiscal management, stable commodity prices and improving agricultural prospects give the economy a solid foundation. A 100‑basis‑point cut in the RBI’s policy rate, a lift in the middle‑class tax bracket, new GST 2.0 rules, a healthy monsoon, better sowing and a surplus of banking liquidity all combine to lift earnings across sectors.
The firm forecasts a clear turnaround for Indian stocks in the latter part of FY2026. It projects the Nifty‑50 (excluding financials and commodities) to grow 13%, while commodity‑heavy segments could rise 16%. Financials, infrastructure and selected industrial plays are expected to lead the surge thanks to stronger loan growth, solid asset quality and supportive lending policies.
Why foreign money matters
Antique notes that India’s equity market still lags behind other emerging markets because foreign portfolio inflows (FPIs) have been weak. The outlook for Indian shares could change if US tariffs ease and if the US‑China trade row eases, which would lift global risk appetite. The Federal Reserve’s policy cues could also influence investor sentiment. If these global factors shift positively, FPI inflows could jump, boosting the market.
Headwinds to watch
Despite the optimism, the report warns that export‑heavy and consumption‑heavy sectors—especially IT services and staples—may continue to drag growth. The festive quarter and a recovery in rural demand will be key signals for whether total earnings momentum holds.
Bottom line
Antique’s 2QFY26 view is upbeat. The firm stresses that sustained policy support, domestic investment strength and strong macro fundamentals should keep India’s market on a positive trajectory. Investors keen on Indian equities will want to keep an eye on policy signals, global trade dynamics and the upcoming festive season to gauge how the market moves forward.
Source: aninews
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
