India’s stock market enthusiasts have reasons to cheer as 2026 dawns with optimism. The Union Budget, slated for early next year, is anticipated to deliver policy stability, setting the tone for a stellar market performance.
Reflecting on 2025, the Nifty 50 climbed 16%, driven by earnings recovery in core sectors and government capex push. Corporate profits are projected to grow 12-15% in FY26, supported by easing input costs and strong order books.
Market veterans highlight the budget’s role in sustaining this momentum. ‘Expect announcements on PLI schemes extension, GST rationalization, and digital infrastructure,’ notes economist Priya Sharma. These moves will enhance ease of business and attract FDI.
Retail investors, now forming 60% of market participation, are fueling the surge via SIPs and demat accounts surging past 15 crore. Midcaps and smallcaps, up 25% last year, may outperform again if budget boosts MSME credit.
Global headwinds like trade wars and commodity spikes pose risks, but India’s $650 billion forex reserves and rupee stability provide resilience. FIIs, net buyers in Q4 2025, signal renewed interest.
Budget day could see fireworks, with sectors like auto, realty, and pharma in spotlight. Analysts forecast Sensex touching 90,000 by mid-2026. For long-term wealth creation, diversify into defensives and cyclicals.
The Indian bull is charging ahead, ready for policy tailwinds to accelerate growth in the new year.