Indian markets saw pressure with Nifty dipping below key support. Analysts believe this is a healthy correction within a bull trend. Nifty is expected to find support and bounce back. Largecap stocks are preferred for stability. L&T is highlighted as a top pick with potential for significant gains. Investors can look for buying opportunities in the current dip.
The underperformance of India's small-cap firms relative to large- and mid-caps this year, after two years of strong gains, is likely to persist into 2026 as stretched valuations, moderate earnings and thin liquidity continue to weigh, analysts said.
IndiGos worst operational meltdown led to thousands of cancellations, rising costs and reputational strain, but HSBC says the airlines long-term fundamentals remain intact. The brokerage cut its target price but kept a Buy rating, arguing that despite new pilot-duty rules and short-term disruptions, IndiGos cost advantage and market position are unchanged as operations begin to stabilise.
