New Delhi: India’s equity markets are expected to remain resilient in 2026 amid global uncertainty, supported by strong domestic fundamentals, policy support and sector‑specific tailwinds, a new report has said.

The report from BP wealth and STOXBOX forecasted that the domestic economy should continue to shine in the global context as “various India‑specific triggers are aligned in the right direction".Among sectors, automobiles are expected to outperform with mid‑single‑digit to high‑single‑digit volume growth as demand benefits from easing inflation, softer interest rates and GST rationalisation, said the report.

The banking sector is positioned for steady, scalable growth as lenders have rebalanced portfolios towards "secured Retail, Agriculture, and MSME (RAM) assets and gold-backed lending."The government’s fiscal strategy is expected to focus on a sustained reduction in the debt‑to‑GDP ratio alongside prudent fiscal management. It added that cumulative 125 bps rate cuts, liquidity injections and macro‑prudential easing by the Reserve Bank of India provide “a strong growth runway.”