Budget 2026: Sectors Poised for Outperformance on Three Key Pillars

• Budget 2026 is expected to maintain focus on sustaining capital expenditure, continuing fiscal consolidation, and using targeted interventions.
• Public capital expenditure has consistently risen, driving private investment, credit growth, and tax buoyancy, rewarding markets.
• Fiscal discipline, with a declining fiscal deficit, is crucial for anchoring interest rates and supporting long-duration assets.
• Infrastructure, industrials, and financials are poised to benefit from continued capex momentum and fiscal credibility.
• Manufacturing, defense, energy transition, and select consumption sectors offer structural opportunities with targeted support.

Why It Matters: Budget 2026's adherence to capex, fiscal consolidation, and targeted interventions will drive specific sector outperformance.