FY26: A market-share grab year for broking

Even as markets prepare for the new financial year, SANDEEP NAYAK, executive director and chief executive officer at Centrum Broking, shares insights with Puneet Wadhwa in an email interview. He discusses how the 'Trump reset' is not yet fully reflected in markets and that its full impact will become clear over the next quarter in terms of its effect on countries and sectors globally. Excerpts:

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What's your outlook for the Indian stock markets for 2025-26 (FY26)?

The outlook for Indian equity markets is constructive. The gross domestic product growth for FY26 is estimated at around 6.5 percent, and the earnings growth for Nifty for FY26, based on consensus estimates, is around 10 percent. The valuation of Nifty, at just under 20x forward, is slightly below long-term averages. At the headline level, the markets seem fairly valued.

Two approaches will be critical for outperforming in the year ahead: first, bottom-up stock selection in growth sectors of the Indian economy, and second, leveraging volatility and correction phases to add fundamentally solid stocks where price declines do not reflect any change in company fundamentals.

Domestic factors are largely priced in. However, the Trump reset is not yet fully priced in, and its full impact will become clear over the next quarter.

Are the risks for the markets more from global developments or local?