Budget 2026: Ambit's Trilok Agarwal on Consumption, Fiscal Strength, Capex Focus

• Trilok Agarwal of Ambit Asset Management expects the FY27 budget to balance 'Three C's': Consumption Boost, Fiscal Consolidation, and Capex.
• He anticipates low double-digit EPS growth for FY27, indicating earnings normalization rather than sharp acceleration.
• Fiscal discipline, GST rationalization, income tax relief, and improved rural/urban demand are key factors for consumption growth.
• Agarwal does not foresee changes in capital gains tax in the upcoming budget.
• Defense sector is seen as a strong growth area due to geopolitical risks and government's indigenization focus.

Why It Matters: Budget 2026 will likely prioritize consumption, fiscal strength, and capex, with defense and finance sectors showing promise.