India set to outperform global peers despite near‑term volatility
The wealth management firm preferred the financial sector as the core portfolio anchor as credit growth is expected to stay healthy, asset quality stable and capital adequacy strong
New Delhi: While volatility is likely to persist in the Indian markets in coming months, the country remains well positioned to outperform many global peers over the medium to long term, a report said.
The wealth management firm, PL Wealth preferred the financial sector as the core portfolio anchor as credit growth is expected to stay healthy, asset quality stable and capital adequacy strong. "Select private banks, PSU banks, and well-managed NBFCs offer attractive risk-reward, particularly during market corrections," the report said.
Industrials and capital goods are also well positioned, supported by sustained government capex, infrastructure spending, and rising order books across defence manufacturing, power equipment, and infrastructure ancillaries, the firm added.
Indian equity markets are expected to stay range‑bound in the near term, with January 2026 characterised by selective opportunities rather than broad rallies, the firm forecasted. Valuations across large caps and quality mid-caps have normalised following last year’s consolidation, shifting focus to earnings delivery.
Large‑cap stocks with strong balance sheets and predictable cash flows should offer relative stability, while stock‑specific opportunities may emerge in select mid‑cap names as earnings visibility improves. “India enters 2026 with a rare combination of strong growth, low inflation, and improving corporate fundamentals,” said Inderbir Singh Jolly, CEO, PL Wealth Management.
