When Gulshan Khera of Indian-Share-Tips.com Expects the Next Bull Wave in Indian Markets?
According to Gulshan Khera, CFP® Chief Strategist at Indian-Share-Tips.com, India’s equity market seems to have passed through its consolidation phase and is gradually preparing for a new upward cycle. He observes that the reversal of foreign portfolio outflows, a softer stance from the Reserve Bank of India, and India’s growing relevance in global indices could combine to push domestic markets higher in the coming quarters. His assessment points to a shift from caution to selective optimism, led by strong fundamentals and robust liquidity conditions.
Khera’s outlook suggests that the most attractive opportunities lie in sectors directly connected to credit, consumption, and manufacturing. Meanwhile, he advises investors to remain patient with technology companies, as their revival may take longer due to weak global demand.
1. Supportive Economic Backdrop Emerging
Several interconnected developments make the current phase interesting for long-term investors:
- Foreign institutional selling has slowed and may soon turn into sustained inflows, providing stability to domestic equities.
- India’s weight in key global benchmarks is expected to increase, ensuring steady participation by global index funds.
- The central bank is likely to consider easing interest rates once inflation stabilises, which would improve borrowing conditions and profit margins across sectors.
Simply put, a mix of returning liquidity, moderating rates, and structural inclusion in international portfolios sets the stage for a stronger market base.
2. Correction Phase Nearing Its End
Khera believes that markets have absorbed most of the negative news from global uncertainties and local policy adjustments. The pattern of selective accumulation in quality stocks indicates that investors are positioning for growth in the second half of FY26. Earnings trends are likely to strengthen as demand from both urban and rural segments rebounds, especially in sectors linked to consumption and finance.
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3. Focus Areas for Investors
Gulshan Khera highlights the following segments as potential outperformers for the medium term:
| Sector | Outlook | Growth Triggers |
|---|---|---|
| Banking and Financial Services | Favourable | Credit growth and healthy balance sheets supporting profitability. |
| Consumer Goods and Durables | Positive | Rising disposable income and festive demand reviving sales. |
| Electronics Manufacturing (EMS) | Very Positive | Production-linked incentives and export-led expansion driving growth. |
| Information Technology | Neutral | Limited visibility in near-term order books. |
4. Building a Robust Portfolio
He recommends investors maintain a diversified mix of quality companies rather than chasing short-term price moves. Prioritising businesses with strong cash flows and credible managements remains essential. While valuation comfort varies by sector, opportunities are emerging in financials, manufacturing, and consumer categories, which are expected to drive the next phase of earnings upgrades.
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5. Broader Market Trends
According to Khera, the midcap and smallcap segments could deliver superior returns as earnings recover and valuations become more balanced. The renewed focus on domestic manufacturing, infrastructure spending, and urban consumption could extend the market cycle beyond short bursts of momentum. He sees the ongoing shift toward formalisation and higher corporate profitability as structural rather than temporary.
6. Concluding Outlook
The strategist anticipates a constructive market trajectory in FY26, supported by stable policy measures, lower borrowing costs, and improving corporate health. Financials are likely to lead the charge, followed by consumer-driven and industrial sectors. Technology, while fundamentally strong, might take longer to participate in the rally due to delayed global recovery. He advises investors to remain steady through market fluctuations and use corrections as buying opportunities.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Registered Investment Adviser, notes that Indian equities are positioned for a potential breakout phase driven by liquidity revival and corporate growth momentum. Investors should continue allocating systematically to quality sectors rather than waiting for short-term clarity. More expert guidance and insights are available at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
