After India’s equity market underperformed in 2025 due to factors like domestic slowdown and FII selling, optimism is cautiously returning. Policy support, improved liquidity, and tax cuts are expected to boost consumption and corporate earnings. While valuations remain a concern, particularly in mid and small-caps, autos and private banks are favored sectors for potential growth.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets