Pradeep Gupta Says Equity Sentiment to Strengthen on Rupee Stability and Easy Liquidity

Rupee Stability and Easy Monetary Conditions to Aid Equity Sentiment, Says Anand Rathi’s Pradeep Gupta

In an environment where global uncertainty continues to shape investor behaviour, rupee stability and easy monetary conditions to aid equity sentiment are becoming crucial drivers for the Indian markets. According to Pradeep Gupta, Vice-Chairman of Anand Rathi Group, the resilience of the domestic backdrop remains a core pillar supporting market confidence, even as near-term volatility persists due to developments in global policy and geopolitics.

Speaking to, Gupta highlighted that while certain market pockets still face valuation pressures, the broader sentiment remains positive. He believes that a combination of domestic liquidity, policy continuity, and improving macro indicators can help sustain market momentum in the coming months. source: Moneycontrol

Domestic Backdrop Strengthening as Markets Navigate Global Uncertainty

Gupta noted that despite episodic volatility linked to US policy uncertainty, India’s economic foundation remains robust. Corporate earnings have shown resilience, and sectors are exhibiting differentiated performance rather than broad-based weakness. In this context, he reiterated that rupee stability and easy monetary conditions to aid equity sentiment will play an essential role in attracting steady domestic participation.

He emphasized that the Reserve Bank of India’s revised projections—raising GDP growth estimates while lowering inflation expectations—signal strong policy confidence. These factors, according to him, contribute to a more balanced risk-reward landscape for long-term investors.

Also Read : Markets Extend Second Week of Gains Even as Rupee Falls to Record Low

Earnings Cycle Stabilising as Corporate India Shows Resilience

When asked whether the persistent earnings-downgrade cycle has finally stabilised, Gupta was unequivocal. He stated that the earnings trajectory has not only stabilised but has turned decisively positive. Despite challenges in certain segments, corporate performance reflects durability and adaptability.

“The environment cannot be described as lacklustre,” he said. “It is resilient, with clear differentiation across industries.”

This improved earnings visibility reinforces the view that rupee stability and easy monetary conditions to aid equity sentiment will help strengthen investor conviction.

Monetary Easing, Consumption Boost and GST Cuts Among Key Catalysts

Gupta identified several near-term catalysts that could support equity markets. These include:

• Possible RBI rate cuts of 25–50 basis points during the current cycle

• A festive-season consumption uplift that extends into early 2026

• GST rate reductions that will positively influence corporate balance sheets from H2 FY26

• Strong and consistent SIP inflows that continue to anchor domestic liquidity

According to him, these factors collectively ensure that rupee stability and easy monetary conditions to aid equity sentiment, especially as India navigates global macro uncertainties.

While he refrained from giving specific index targets such as Nifty 27,000 ahead of the holiday season, he acknowledged that any progress on the India–US trade agreement would be a sentiment booster. However, he stressed that index projections depend on multiple variables including earnings delivery, trade deal terms, and global risk appetite.

IT Sector Outlook Cautiously Constructive Despite Policy Friction

On the IT sector, Gupta maintained a cautiously optimistic tone. He acknowledged that H-1B visa concerns may cause short-term sentiment pressures, but clarified that the impact would be more psychological than structural. Indian IT firms, he pointed out, have diversified their delivery models through increased offshore work, near-shore centres, and automation.

Fundamental drivers—cloud transformation, cost optimisation and AI-led services—remain intact. He expects the sector to see friction in the near term but does not foresee a structural earnings shock. As US policy uncertainty eases, he anticipates gradual improvement.

Financials Expected to Benefit from Rate Easing and Regulatory Reforms

Gupta expects financials and other rate-sensitive segments to perform well, supported by favourable monetary conditions. Potential RBI rate cuts, combined with recent regulatory easing in credit markets, are likely to improve liquidity and credit flow.

Recent measures, including higher financing limits and expanded caps on loans against shares, are creating a supportive environment for lenders. Within the quality-growth framework, he considers financials with strong balance sheets and consistent earnings power among the most attractive picks.

This aligns with his broader view that rupee stability and easy monetary conditions to aid equity sentiment will particularly benefit the financial sector.

Capex Outlook Supported by Demand Recovery and Better Working Capital Conditions

Looking ahead, Gupta expects capex growth to remain healthy. He projects a 10–11% increase in capex spending next year, driven by strong domestic demand and improved working capital conditions, especially from the second half of FY26.

He believes that ongoing policy support, private-sector balance-sheet strength and improving consumption demand will sustain the investment cycle.

Market Outlook: Short-Term Caution but Strong Long-Term Foundations

As markets balance global policy risks against domestic strength, Gupta remains confident about the broader trend. While volatility may persist in the near term, the medium- to long-term outlook remains constructive.

With rupee stability and easy monetary conditions to aid equity sentiment, supported by domestic liquidity, improving earnings and favourable policy shifts, he believes India’s equity markets are well-positioned to navigate upcoming challenges.

• Nifty 50
• Bank Nifty
• Sensex