Indian market resilient; stocks could touch new highs by March

Despite whispers of an impending market correction due to a potential equity glut, A. Balasubramanian, managing director and chief executive officer (CEO) of Aditya Birla Sun Life asset management company (AMC), which has an overall assets under management (AUM) of ₹4 trillion as of the June quarter, is betting on Indian equities hitting a fresh lifetime high in FY26.

- Dipti Sharma

The AMC manages equity assets worth ₹1.8 trillion.

India remains resilient with a strong absorption capacity despite the surge in equity supply. Right now, demand and supply are largely balanced, keeping markets within a narrow range, he explained.

Edited excerpts:

What's your outlook for Indian equities this fiscal?

The market seems to be in a consolidation phase, with tariff uncertainty still weighing. While the Goods and Services Tax (GST) cut has offered some relief, how do you see markets shaping up from here till the end of this fiscal?

My outlook is gradually turning bullish. We're confident about Indian markets, with improved corporate earnings aided by GST, strong 7.8% GDP (gross domestic product) growth, and rising government and private sector spending. Over the next year, semiconductor and electronics manufacturing will move from setup to production, boosting exports and company revenues. With domestic consumption resilient and India's fundamentals acknowledged by rating upgrades, I believe the Indian market is poised to touch a new lifetime high this fiscal.

What's your view on the surge in equity supply—with promoter exits, private equity (PE) sell-offs, government divestments, and a heavy initial public offering (IPO) pipeline? Could this create a demand-supply imbalance and trigger a market correction ahead?

Despite the surge in equity supply, India remains resilient with strong absorption capacity. Right now, demand and supply are largely balanced, keeping markets sideways (within a narrow range). But this is temporary—most PE exits have already happened, and they're leaving with big profits, proving India has been their best market. That success will draw them back, likely boosting EM allocations to India in the second half, which could help markets touch new highs by March or even before the Budget.