New Delhi, Oct 15
India’s equity markets are poised for a strong festive quarter, driven by rate cuts, GST 2.0 reforms and improving domestic liquidity, a report said on Wednesday.
The second half of FY26 will deliver broader market strength, led by financials, consumption, infrastructure, and power sectors, as policy reforms and festive sentiment fuel fresh opportunities, according to the report from investment platform Smallcase.
MFIs will see a boost as monsoon-driven rural income and the festive season in H2 FY26 underpin a pickup in fresh disbursements, especially in two-wheeler and consumer durable loans, he added.
The RBI has upgraded FY26 growth to 6.8 per cent, citing strong rural demand supported by good monsoon, robust agricultural activity, and gradually reviving urban demand. The government announced Rs 11.21 lakh crore capex allocation for FY26, supporting infrastructure-led growth, particularly benefiting sectors like railways, roads, and urban development.