**India Economic & Market Update** **Economic Cycle Bottoming Out** India’s economy is showing early signs of stabilizing after a period of deceleration. While the slowdown appears to be arresting, the recovery trajectory remains cautious amidst external pressures. **FY27 Budget Expectations** Support from the upcoming **FY27 Budget** is projected to be modest. Fiscal consolidation efforts may see a temporary pause to accommodate increased capital expenditure, but a broad-based stimulus is unlikely. The government is expected to prioritize targeted capex over aggressive spending measures. **Market Implications** Earnings recovery faces significant hurdles due to limited domestic stimulus and persistent global headwinds. Consequently, markets are likely to remain defensively positioned in the near term as investors adjust to a restrained growth environment.