Budget 2026: Fiscal Consolidation Intact, Bond Market Confident, Says Edelweiss' Rashesh Shah

• Edelweiss’ Rashesh Shah states Budget 2026 delivered continuity, focusing on fiscal consolidation without major surprises.
• Shah highlights the bond market's positive response as a key signal, reflecting confidence in the government's fiscal stance.
• He notes a shift in India's capital markets from equity-centric to an 'equity plus bond market', with increasing flows into mutual funds, AIFs, REITs, and InvITs.
• Future market performance hinges on growth revival, led by consumption, manufacturing, and corporate sectors, rather than policy tweaks.
• Shah suggests RBI has room to cut rates, prioritizing growth over rupee strength, and notes strong domestic participation despite FII caution due to high valuations.

Why It Matters: Budget 2026 prioritizes fiscal consolidation and bond market confidence, signaling a shift towards a balanced capital market.