Dalal Street is entering Samvat 2082 on an optimistic note, after a year of modest returns. While the Sensex and Nifty 50 moved mostly sideways over the past twelve months, the festive season of Diwali 2025 has brought renewed enthusiasm to Dalal Street.
Analysts believe that improving economic indicators, policy reforms, and a stable inflation outlook are setting the stage for stronger growth in the year ahead.
India’s macroeconomic fundamentals remain firm. Global rating agency S&P recently upgraded India’s credit outlook, while the International Monetary Fund (IMF) raised its GDP forecast.
Domestically, the Reserve Bank of India’s recent rate cuts, GST rationalisation, and personal income tax relief are expected to boost consumption and corporate profitability in the coming quarters.
Motilal Oswal Financial Services said Indian equities have held steady despite global headwinds.
“As we usher into a new Samvat 2082, India stands at a defining point in its economic and market journey, marked by reform momentum, macro resilience, and a maturing domestic investor base. Over the past year, Indian equities have held firm despite persistent FII outflows, global trade frictions, and geopolitical uncertainty,” the brokerage said.
Nifty50 was up by 4.2% during Samvat 2081, while the Nifty Midcap100 gained 4.7%. The Smallcap100, however, slipped 2.7%. Despite this muted performance, analysts say that the underlying fundamentals have strengthened — supported by 7.8% GDP growth in Q1 FY26, easing inflation (1.5% in September 2025 vs 5.5% a year ago), and a favourable policy environment.
Motilal Oswal added that Samvat 2082 begins on a positive note, thanks to fiscal and monetary support. “The RBI has cut the repo rate by 100 bps and CRR by 150 bps, injecting liquidity into the system. Combined with income tax relief worth Rs 1 lakh crore and GST 2.0 reforms, this will revive demand and improve corporate earnings. Inflation remains comfortably low, and consumer sentiment has turned positive,” the report said.
It added that the market could see a major shift in the second half of FY26. “We expect earnings growth to move from single-digit in FY25 to double-digit in FY26 and FY27. Nifty earnings growth is projected at 8% in FY26 and 16% in FY27. Valuations are reasonable at around 20x FY26 earnings,” it said.
Motilal Oswal recommends focusing on domestic cyclicals and structural growth sectors, including BFSI, capital markets, manufacturing (EMS, defence, and industrials), consumption, and digital themes.
According to Choice Broking, the following stocks have strong potential for the new trading year:
Zensar Tech (Technology): CMP Rs 757 | Target Rs 1,130 | Upside 49.4%
Birla Corporation (Construction Materials): CMP Rs 1,188 | Target Rs 1,650 | Upside 38.9%
Nuvoco Vistas Corporation (Construction Materials): CMP Rs 405 | Target Rs 560 | Upside 38.2%
Gulf Oil & Lubricants (Energy): CMP Rs 1,219 | Target Rs 1,600 | Upside 31.3%
Bharat Dynamics (Aerospace & Defence): CMP Rs 1,502 | Target Rs 1,965 | Upside 30.9%
Bharat Electronics (Aerospace & Defence): CMP Rs 408 | Target Rs 500 | Upside 22.5%
Jeena Sikho Lifecare (Hospitals): CMP Rs 742 | Target Rs 900 | Upside 21.2%
Mahindra & Mahindra (Auto): CMP Rs 3,497 | Target Rs 4,150 | Upside 18.7%
Radico Khaitan (AlcoBev): CMP Rs 2,943 | Target Rs 3,340 | Upside 13.5%
Technology, construction, defence, and energy are expected to be key outperformers during Samvat 2082, with Zensar Tech and Birla Corporation leading the list in terms of potential returns.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that the market’s performance in the coming year will depend on corporate earnings recovery.
“The important takeaway from Samvat 2081 is India’s underperformance. The single major factor was the slowdown in earnings growth to 5% in FY25 from an average of 24% in the previous three years. The fiscal and monetary reforms implemented this year are showing results. If the strong festive demand continues, earnings could grow 8–10% in FY26 and 15% in FY27,” he said.
He added that short-term support could come from a potential India-US trade deal, but the long-term trend will depend on sustained earnings improvement.
Revival in consumption due to GST 2.0 and festive demand
Acceleration in earnings growth across largecap and midcap companies
Progress in India’s trade deals with the US and EU
Continued focus on manufacturing, defence, and digital infrastructure
As investors step into the new trading year, analysts suggest a selective approach, balancing exposure between defensive and growth-oriented sectors. With improving fundamentals and policy support, Samvat 2082 could mark the beginning of a stronger growth cycle for Indian equities.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)