What’s stressed, what still works—and where fund managers would invest ₹10 lakh

₹12 lakh, increasing disposable incomes at the hand of consumers.On the monetary policy front, the Reserve Bank of India (RBI) has delivered a massive 125 basis points (bps) reduction in interest rates over the past 12 months, which is expected to boost liquidity in the market through higher spending in rate-sensitive segments, such as banking, real estate and consumer durables.“Policy measures implemented during the year, including tax and interest rate reductions, are beginning to yield positive results, which are expected to translate into stronger earnings growth for domestic economy-oriented sectors in 2026,” Yogesh Patil, chief investment officer, equity, LIC Mutual Fund Asset Management (LIC MF), told Mint. The strength of India’s macroeconomic fundamentals, coupled with the expected benefits of recent policy moves, has made this optimism the near-consensus view on the Street.“We expect festive demand momentum in Q3 results to bring calm to the market as we enter 2026.

We remain positive on India equities over the next few quarters as the impact of a reasonably good monsoon, benign inflation and lower prices (due to GST reduction) play out leading to commencement of an earnings upgrade cycle,” said Asit Bhandarkar, senior fund manager, equity, JM Financial Asset Management.Rural wages have started showing meaningful signs of improvement, which augurs well for consumption in the coming quarters. Credit growth signs too are encouraging, he added.One overhang is the signing of the much-awaited India-US trade deal.