Budget 2026 to Boost Manufacturing, Exports; Small-Caps to Outperform: Vyas

• Union Budget 2026 to prioritize domestic manufacturing, export competitiveness, and strategic sectors for long-term growth.
• Quest's Rakesh Vyas expects small- and mid-cap companies to deliver stronger earnings momentum and outperform large caps in 2026.
• Agrochemical sector valuations appear attractive, with a recovery in demand and operating leverage expected to drive better stock performance.
• Power sector demand is set for a meaningful recovery in 2026 due to normalized weather and industrial activity, improving earnings visibility.
• Corporate earnings are projected to grow 12-14% in 2026, led by lending, consumer discretionary, and export sectors, supporting equity market returns.

Why It Matters: Budget 2026 focuses on growth, with small-caps, power, and agrochemicals poised for strong performance.