The first half of FY26 saw modest gains for benchmark indices despite global challenges. Nifty 50 advanced by 2.5%, supported by domestic institutional investors amid intense FII selling and elevated US interest rates.
Infrastructure and PSU Banks emerged as winners in H1FY26 with returns of 18.5% and 22.3% respectively, aligning with government capex focus. In contrast, IT services faced headwinds from H1-B visa fee hikes and reduced technology spending, declining by 15.5%. The metals sector struggled with China competition falling by 8.9%.
Ashwini Shami from OmniScience Capital expects economic growth momentum to continue with support from the current festive season and consumption boost due to tax cuts and a benign interest rate environment.