Budget 2026: No Major Tax Changes Expected; India to Outperform Global Markets

• Rohit Sarin, Co-Founder of Client Associates, anticipates no major tax structure changes in Union Budget 2026, emphasizing stability and continuity.
• Earnings growth is believed to have bottomed out, with a gradual and uneven recovery expected, not a sharp rebound.
• India is likely to outperform global markets in 2026 due to stable macroeconomics, resilient domestic demand, and reasonable valuations compared to concentrated, high-valuation US markets.
• Investors are advised to base portfolio decisions on long-term asset allocation, with a current overweight stance on large-cap equities.
• Government's focus is shifting from capex-led growth to consumption-driven demand through targeted support measures.

Why It Matters: Budget 2026 will prioritize stability over tax changes; India is poised for market outperformance with gradual earnings recovery.