India’s growth momentum remains robust despite challenges such as rising crude prices and a weaker rupee. In the third quarter, the GDP expanded by 7.8%, with a projected full-year growth of 7.6% for FY26. The report from PL Asset Management highlighted healthy private consumption growth and a push in manufacturing.
The recent market corrections have led to a favorable valuation backdrop, with the Nifty trading at a 5.6% discount to its five-year average PE. This enhances the medium-term risk-reward scenario for investors, according to the report from PL Asset Management.
Sectoral winners identified in the report include metals, energy, pharma, industrials, autos, and public sector bank financials. However, IT underperformed, and gold remains a key allocation hedge. The report also mentioned that near-term volatility may persist but could create attractive entry opportunities for long-term investors.
The forecast suggests that initiatives like India–US tariff reduction, progress on the India–EU FTA, and the government’s Rs 12.2 lakh crore infrastructure push under Budget 2026 will boost export competitiveness and accelerate the domestic capex cycle. This is expected to reinforce India’s medium-term growth outlook.
