PSU Banks, Metals Lead FY26 Rally as Consumption, IT Stumble in Divergent Market

• FY26 saw sharp divergences in India's equity markets, with headline indices slipping 4-5% while themes shifted.
• Nifty PSU Bank Index surged 32%, becoming the top performer, driven by strong credit growth and improved asset quality.
• Metals gained 23% due to firm global commodity prices; Automobiles rose 14%.
• Real estate plunged 21%, and IT fell 20% amid AI concerns and recessionary risks.
• Consumption themes disappointed, with Nifty MidSmall India Consumption Index falling 12%, reversing FY25 gains.