Budget 2026: Fiscal Math, Manufacturing Focus Reassuring; Earnings Growth Key for Markets

• Rahul Singh of Tata AMC highlights the Union Budget 2026's credible fiscal math and strong manufacturing focus as its most reassuring aspects.
• He notes that while the Budget reinforces India's long-term structural growth story, corporate earnings growth will be the decisive factor for equity markets over the next 12-18 months.
• Singh views defence as a structural long-term opportunity due to continued emphasis on indigenisation, higher capital outlay, and domestic manufacturing.
• The Budget is seen as a pragmatic roadmap for resilience and structural growth, emphasizing policy stability and predictability for businesses.
• Expansion of REITs and InvITs is anticipated as asset monetisation remains a key policy objective, attracting long-term capital.

Why It Matters: Budget 2026's fiscal credibility and manufacturing push are positive, but future market growth hinges on corporate earnings.