Indian stock market projected to rebound in FY26

Caprize Investment predicts that the Indian stock market will rebound in the second half of financial year 2026, despite ongoing corrections and capital outflows. High-growth sectors are expected to stabilize amid market volatility. Key investment themes for 2025 include discretionary consumption, power, manufacturing, renewables, and water treatment. Specific stock picks include V2 Retail, Transformers & Rectifiers India, and Insolation Energy, among others. While some sectors may struggle, discretionary consumption and renewables are likely to maintain growth. Caprize emphasizes a strategic investment approach focused on earnings clarity and valuation discipline to navigate market changes.