India’s growth resilient: HDFC Sec

ANI

New Delhi

In the backdrop of geopolitical tensions and a recent market correction, India's real GDP growth is projected to be approximately 6.5% for FY26-FY27, with nominal GDP expected to expand in the range of 10-11%, according to a report released by HDFC Securities on Monday.

The Big Review 2026 presents a detailed outlook on India's economy and capital markets for FY27. It underscores the government's sustained emphasis on infrastructure development, projecting that capital expenditure could account for nearly 32% of total spending in FY27. On the macroeconomic front, inflation is anticipated to ease to around 4.5%, while the fiscal deficit target is estimated at 4.3%, reflecting continued fiscal consolidation efforts.

According to the report, the Indian rupee continues to face pressure due to subdued foreign direct investment (FDI) inflows and persistent trade deficits. Foreign portfolio investors (FPIs) have withdrawn approximately $18 billion in FY26, signalling ongoing external headwinds. On earnings, the report estimates around 10% growth for the broader market, although sectoral trends may remain uneven.

The banking, consumer discretionary, metals and telecom sectors are expected to see gradual improvement, while the energy sector may witness contraction. Despite recent corrections, valuations in mid-cap and small-cap segments remain elevated. The report advocates a Growth at a Reasonable Price (GARP) investment strategy, favouring sectors such as industrials, infrastructure, consumer discretionary and real estate, while maintaining an underweight stance on cement, chemicals, and oil & gas.