UBS Sees Selective Upside in India as Power and Capital Goods Lead

Mumbai, 29 August 2026 – Indian equities may remain range-bound over the next three to six months even as the one-to-two-year outlook becomes more constructive, according to a market assessment that points to improving earnings visibility and easing macroeconomic uncertainty. The view is not a call for indiscriminate buying. A heavy pipeline of share supply from promoters, private-equity investors and the government could cap near-term gains, making company selection more important than broad index exposure.

The improving medium-term case rests on several building blocks. More stable crude-oil prices have reduced a source of uncertainty for an economy that imports much of its energy, while expectations for a recovery in growth are becoming firmer. That combination can support corporate earnings and domestic demand. Yet valuations across popular structural themes already reflect substantial optimism, leaving less room for execution disappointments or delays in capital expenditure.