Mumbai, April 10 (NationPress) India's growth trajectory remains strong, with the Q3 GDP witnessing an impressive expansion of 7.8 percent. Forecasts indicate a 7.6 percent growth for FY26, fueled by a robust private consumption growth of 8.7 percent and a remarkable 13.3 percent growth in the manufacturing sector, as detailed in a recent report.

The analysis from PL Asset Management, the investment division of PL Capital Group (Prabhudas Lilladher), reveals that while global markets faced significant volatility due to energy supply disruptions and fluctuating monetary policy expectations, Indian stocks displayed relative stability. This resilience is anchored in the country's strong domestic macroeconomic fundamentals, favorable liquidity conditions, and sustained institutional engagement.

The report emphasizes that strong macroeconomic performance and supportive domestic liquidity have shielded India from various geopolitical challenges.

Nevertheless, potential risks loom on the horizon. Factors such as escalating crude oil prices, a depreciating rupee, sluggish global growth, disrupted supply chains, and tightening global financial conditions could collectively widen the fiscal deficit, hinder GDP growth, and diminish the current macroeconomic advantages that have bolstered market confidence.

Siddharth Vora, Head - Quant Investment Strategies and Fund Manager at PL Asset Management, stated, “The global landscape is evolving into one marked by high uncertainty and liquidity constraints, fueled by geopolitical tensions and ongoing energy supply issues. Persistently high crude prices are likely to keep inflation elevated and interest rates sustained at higher levels, exerting pressure on earnings, fiscal positions, and currency stability, leaving the rupee exposed.”

“Amidst these challenges, disciplined risk management and selective investment strategies will be vital. An inclination towards large-cap stocks, along with considerations for value, quality, and low volatility, is likely to yield better resilience,” he added.

Looking ahead, the report anticipates that the reduction of tariffs between India and the US, advancements in the India-EU Free Trade Agreement, and the government's ambitious Rs 12.2 lakh crore infrastructure investment under Budget 2026 will enhance export competitiveness, unveil new growth opportunities, and accelerate domestic capital expenditure, thereby reinforcing India's medium-term growth prospects.

Regarding inflation, the report indicates that it remains comfortably within the Reserve Bank of India's tolerance zone, providing policymakers with the necessary flexibility to maneuver.