ETBudget Boardroom | India is a stock picker’s paradise”: Navneet Munot on Markets and Budget 2026

India's Market Resilience Shines Amid Global Headwinds

Navneet Munot, Managing Director and CEO of HDFC Asset Management Company, painted an optimistic picture of India's stock markets at the ET Budget Boardroom event in Mumbai.

He called the country a "stock picker's paradise," highlighting how investors who carefully select individual stocks can thrive despite broader challenges.

With markets hitting record highs in 2025 and momentum carrying into 2026, Munot noted that while there are headwinds like global uncertainties, India's growth story remains robust.

The nation has sustained over 8% economic growth even as the world grapples with political and economic instability.

Domestic institutional investors have poured nearly $250 billion into markets over the past five years, stepping in as foreign investors pulled back.

This shift underscores India's deepening domestic participation, providing a stable base for market expansion.

Praise for Policy Continuity and Ongoing Reforms

Munot commended Finance Minister Nirmala Sitharaman for presenting her ninth consecutive budget, a testament to the government's steady hand.

He appreciated that reforms aren't confined to Budget Day; initiatives like GST simplification, labour codes, and energy transitions are rolling out continuously.

The government's push into new-age manufacturing, such as semiconductors and electric vehicles, positions India to seize emerging opportunities.

Even the choice to present the budget on a Sunday signals an unwavering commitment to progress.

Munot emphasized that trillions of dollars in household wealth tied up in gold, silver, and land could be unlocked for productive use in capital markets.

These efforts are building a foundation for sustained earnings growth, which he sees as crucial for justifying current valuations where price-to-earnings multiples have expanded beyond earnings rises.

Key Expectations from Budget 2026

Looking ahead to Budget 2026, Munot outlined three priority areas to bolster India's growth trajectory.

"India is a stock picker's paradise. Despite global macro and political uncertainties, we have continued to pedal hard on reforms... trillions of dollars of household wealth are locked in gold, silver, and land, and we need measures to channel that into equity markets."

First, fiscal incentives similar to Section 54F to encourage shifting investments from physical assets like gold and land into long-term equity, boosting market depth.

Second, a substantial increase in funding for the PM Vishwakarma scheme to skill workers for an AI-driven economy.

Third, higher allocations for artificial intelligence and research & development to make India the global "use-case capital" for AI applications.

He envisions India leading in AI not just in development but in practical implementations across sectors.

Munot also touched on the need to review outbound investment limits, currently capped at $7 billion, which have lost real value over time.

Overall, he expects a blend of public and private capital expenditure, focusing on railways, PLI schemes, and tech-driven areas to fuel earnings-led market rallies.

These steps could help corporatize more businesses and create larger market capitalizations.

In summary, Navneet Munot's insights at the ET Budget Boardroom affirm India's strong positioning as a resilient market for discerning investors. With policy continuity, reform momentum, and targeted Budget measures, the country is poised to navigate global uncertainties and unlock new growth avenues through deeper domestic savings, skill enhancement, and tech investments.