Indian stock market remains attractive for long-term investors: Report
New Delhi, June 25
Indian equities may remain range-bound in the near term, but long-term outlook remains positive, backed by strong economic fundamentals and structural growth drivers, a report said on Thursday.
The report from PL Wealth recommended staggered investments in quality large‑cap and large‑and‑mid‑cap strategies for short‑term investors.
As inflation pressures ease and external headwinds decline over the medium term - six to 24 months - domestic growth drivers should support a broad‑based earnings recovery, allowing investors to increase allocations to large‑cap, large‑and‑mid‑cap and sectoral strategies.
The report said markets are expected to be range‑bound and driven by events such as crude oil prices, inflation trends, the monsoon, geopolitical developments and changes in earnings expectations.
As short‑term earnings revisions remain under pressure in some sectors because of higher production costs and a difficult global backdrop, selective stock picking is preferable to broad market exposure.
"India continues to be an outlier among the leading economies of the world because of the robust nature of the domestic economic growth engines like consumption, production, infrastructure spending and the growing trend of savings being financialised," said Inderbir Jolly, CEO, PL Wealth.
On fixed income, the firm said that investors should focus on short‑duration and medium‑term instruments that offer a balanced risk‑reward profile due to higher inflation expectations and a high interest‑rate environment.
Gold is gaining importance as a strategic reserve metal against the backdrop of rising geopolitical uncertainties and ongoing concerns about inflation. Central banks' purchases and efforts of sovereign investors for diversification are likely to underpin the prices of gold on a structural basis going forward.
Equity market performance has grown more selective in nature, where investors favour companies showing visible earnings, healthy balance sheet and good growth potential.
India's economic performance continues to be strong, with the manufacturing and service PMI figures of 55.0 and 59.8, respectively, in May 2026, far better than that of most other major economies around the world, the report noted.
— IANS
Reader Comments
Good points about consumption and infrastructure spending — that's the real backbone of our economy. But the report's advice on gold is also spot-on, given these geopolitical times. My father always said, "Gold is a woman's best friend," but now even men are hoarding it! 😂
"Range-bound" is code for "boring" for short-term traders! PL Wealth is right — big picture looks strong due to domestic growth, but I wish they'd talk more about small-cap risks. Many retail investors are getting burned chasing quick returns. Choose wisely! 🧐
The report mentions "financialisation of savings" — that's a fancy way of saying more people are buying mutual funds via apps! Well done, platforms like Zerodha and Groww. But I'm cautious about the "selective stock picking" part — most common folks should stick to index funds, not try to beat the market. 😅
PMI figures are impressive — 55 and 59.8! But the ground reality for middle-class families is still challenging due to rising prices and high interest rates. This report feels a bit too optimistic to be honest. I hope growth trickles down to small businesses soon. 🙏
Thank you for highlighting infrastructure spending and consumption. As someone who works in construction, I can see the government's push on roads and bridges — it's real. But I'm skeptical about the "fixed income" advice; with inflation still high, FDs barely give 5% real returns. Gold is indeed the safer bet now
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