Net direct tax collections surged 31% YTD, eclipsing last year’s 25% growth and nudging the fiscal health curve upward.
GST receipts jumped 14‑15% in the last two months, a 5‑point increase over the same spell in 2025, lifting consumer spending momentum.
Indian yields rose 10‑20 basis points, yet have held steady since Feb 28, outpacing developed markets by about 15 bp, signalling a resilient bond environment.
In response, Bajaj Alts’ JITENDRA GOHIL flags discretionary consumption and banks as the most attractive sectors. Auto and consumer durables remain solid, while malls and multiplexes show uptick.
Looking ahead, the 2026 US midterm stimulus and Uttar Pradesh elections are slated as potential tailwinds, while the Eighth Pay Commission could trigger fiscal expansion.
Investors should monitor bank valuation multiples, as current levels sit 15% below 12‑month average, offering a potential upside if policy remains accommodative.