Market Outlook - March 2026

Market update

Opportunities within challenges!

Financial Year ’26 turned out to be a challenging year for
Indian equity markets, continuing the trend seen since
September 2024. After 15 months of challenges, Indian equity
markets were showing signs of stability and optimism. The
West Asia conflict changed that optimism into serious
worries and consequent sharp corrections. Despite all the
concerns, we do believe that markets are now presenting
a good opportunity amidst all the challenges for long-term
investors looking at reasonable decent returns.
On the domestic economy side though, India continues to
stand out as one of the more resilient large economies in an
otherwise uncertain global environment. Domestic demand
has continued to remain steady supported by governmentled
capital expenditure, easing monetary conditions
and improving balance sheets across households and
corporates.
While near-term corporate earnings may get impacted, we
feel the war-related impact on growth has already been
priced in, albeit more in a few instances. The broader longerterm
trajectory remains intact, and India Inc. should come
out stronger from the current crisis in Middle East.