As India continues to navigate the intricate maze of global trade uncertainties, one key theme emerges: the strength of its domestic demand. According to Ankur Jhaveri, a leading expert at JM Financial Institutional Securities Ltd, the Indian equity markets are well-placed to weather the storms from the West, as the focus turns inward to foster growth.

Riding the Waves of Change

India’s policy landscape, with its GST rationalization and policy stability, has created a fertile ground for growth-oriented sectors to outperform historically value-driven investments. Jhaveri points out that these sectors are likely to lead the charge in FY26-27, thanks to a combination of strong domestic consumption and supportive fiscal measures.

IT Companies and the H-1B Visa Sentiment

The IT industry, a key component of India’s economic engine, faces unique challenges amidst the evolving U.S. H-1B visa policies. While the direct financial impact may be limited, the sentiment shift is significant. Companies in this sector are expected to adapt by enhancing local hiring practices and embracing offshoring strategies.

RBI’s Balanced Approach

The Reserve Bank of India’s (RBI) neutral stance, with an unchanged repo rate of 5.5%, reflects a calculated “wait and watch” strategy in the current climate. The RBI’s commitment to fostering a stable economic environment encourages positive growth projections, signifying an alignment of fiscal and monetary policies.

October: A Month of Revival

With September hinting at a positive turnaround, the festive October season promises a vibrant boost in discretionary spending, particularly in sectors like automobiles and apparel. Indicators suggest robust demand, with corporate earnings poised to further uplift investor confidence.

The Growing SIP Phenomenon

India’s evolving investment culture is marked by a significant surge in Systematic Investment Plans (SIPs), illustrating a population increasingly leaning towards market-linked returns. While SIPs provide a consistent investment flow, the evolving financial acumen of retail investors is a testament to India’s broader financial evolution.

As stated in The Economic Times, the journey of India’s equity markets is not without its challenges. However, the strong domestic demand narrative, coupled with strategic reforms, is setting the stage for a promising era of growth and investment prosperity.