New Delhi: The Union Budget 2026–27 prioritised durable growth, fiscal prudence and execution certainty over short‑term market appeasement, a report said on Wednesday.
The report from PL Wealth, the wealth management arm of PL Capital, said the medium‑term outlook remains constructive for infrastructure, capital goods, defence, logistics, manufacturing and select export‑oriented sectors such as engineering goods, textiles and gems and jewellery.
The equities may see near‑term sectoral rotation as investors respond to domestic policy priorities and improved clarity from the India–US trade deal, the report noted.
Regarding fixed income instruments, the firm said bond markets may face near‑term yield pressures from elevated supply and global rate uncertainty. Over the medium term, higher yields enhance forward return potential, particularly for high-quality bonds.
The wealth management firm said infrastructure assets, including InvITs and REITs, private credit and select private equity themes could be used as diversification tools amid equity volatility and bond repricing.
Regarding the budget, the report maintained that elevated borrowing and liquidity adjustments could create intermittent volatility across asset classes, but these should be viewed as transitional effects rather than signals of macro stress.
For long-term investors, the Budget reinforces confidence in India’s medium-term growth trajectory, underpinned by sustained public investment, manufacturing depth, services expansion and institutional continuity, it added.
“In this environment, a disciplined approach to asset allocation, prudent duration management and selective exposure to structural growth sectors remains the most effective strategy to compound wealth while navigating near‑term uncertainty,” said Inderbir Singh Jolly, CEO, PL Wealth Management.
The medium-term investment case in markets remains intact anchored in public capex, manufacturing incentives and policy continuity.
The policy stance prioritises durable capital formation, domestic manufacturing and services competitiveness, even as fiscal consolidation proceeds at a calibrated pace. With capital expenditure budgeted at Rs 12.2 lakh crore up 11.5 per cent YoY and the fiscal deficit set at 4.3 per cent of GDP, the Budget balanced growth support with macro stability, the report noted.
(IANS)
