India’s GDP data continue to veer into irrelevance for most economic agents, who are behaving very differently from what robust growth would dictate

Indian equities are poised for the festive season with strong optimism in the auto sector. Improving demand and festive momentum are expected to bring positive surprises this December quarter. Two-wheelers, EV makers, and tractor manufacturers are showing robust volume trends. Maruti Suzuki is a preferred pick in passenger vehicles. PSU banks may also attract investor interest due to attractive valuations.

Dhananjay Sinha of Systematix Group sees positive sentiment driving PSU banks, fueled by news of dilution and FII participation, despite recent lacklustre profit performance. He views the metals sector as a trading play, influenced by global dynamics and financial correlations, rather than a structural investment, citing weak underlying demand.

The ongoing result season is on expected lines, which is pivoted on weak demand scenario, margin pressure and companies working towards cost optimisation to keep profitability afloat, said Dhananjay Sinha.

In this edition of ETMarkets Smart Talk, Nikhil Khandelwal, Managing Director of Systematix Corporate Services Ltd, explains why he remains bullish on Indian markets for FY26.

Nikhil Khandelwal, Managing Director at Systematix Group, remains positive on State Bank of India and advises long-term investors to stay invested, supported by its diversified businesses and improving profitability.

If earnings stabilise and domestic liquidity stays healthy, 2026 still has room to surprise on the upside for the market, said Nikhil Khandelwal.