The Indian stock market appears to be approaching its bottom, with experts identifying promising sectors for FY26. IT services are expected to benefit from increased demand for digital transformation and AI-driven efficiencies. The pharmaceutical sector remains resilient, driven by global health concerns and healthcare infrastructure investments. Agriculture is emerging as a promising area, with government support and advancements in agri-tech. Despite recent corrections, particularly in smallcaps, analysts anticipate a strong earnings recovery starting from H2FY26. Investors are advised to focus on companies with strong fundamentals, stable cash flows, and resilient business models. The Nifty's current PE ratio of approximately 20.5x is near its lowest levels in the past 5-10 years, presenting attractive investment opportunities.
Sources: MoneyControl, Economic Times