Market Outlook - July 2026

June 2026: The Indian equity market has once again demonstrated remarkable resilience, navigating a period marked by geopolitical tensions, evolving global trade dynamics, and shifting monetary policy expectations.
Indian equity markets entered the second half of 2026 from a position of strength. Today, the environment has become significantly more favorable. Geopolitical tensions have eased, energy prices have retreated from their highs, and global oil trade flows have largely returned to normal, providing greater stability to the broader economic landscape.
Strong domestic economic fundamentals, healthy corporate earnings, sustained retail participation, and continued confidence in India's long-term growth story have enabled markets to navigate an increasingly complex global environment. The defining characteristic of the Indian market in June was its ability to remain focused on domestic strengths while global markets grappled with uncertainty. The earnings outlook has strengthened meaningfully, with corporate earnings expected to clock double digit growth over FY26-28, despite temporary pressure in 1QFY27. Investors might overlook 1QFY27, considering it to be a temporary impact of the war.