• Macro and earnings: Global uncertainty is expected to subside soon, and Indian equities are positioned for a positive turnaround driven by better-than-expected Q1 earnings and potential FCNR(B) deposit inflows of up to $100 billion.
• Ground-level demand: Rural and urban consumption shows no signs of a slowdown, supported by strong two-wheeler and tractor sales, startup expansion, gig economy employment, and extended PLI capex benefiting hundreds of small-scale suppliers in defense and railways.
• Primary market supply: Increasing equity issuance through IPOs allows companies to keep balance-sheet leverage low while raising growth capital, with major upcoming offerings like NSE and Jio Platforms expected to attract strong foreign institutional participation.
• Sector investment preferences: Top sectoral picks include banking and NBFCs due to easing deposit costs, auto ancillaries exposed to electric vehicles, profitable renewable energy players, and capital goods supported by strong three-to-five-year order books.