Indian equity markets are facing sustained selling pressure as fresh worries over possible tariff actions by Donald Trump, continued foreign fund outflows, and rising geopolitical risks weigh on investor sentiment. Mixed corporate earnings for the third quarter have so far been unable to provide meaningful support to the markets. At the same time, investors are staying cautious ahead of the Union Budget 2026, amid concerns that the government’s emphasis on fiscal discipline could result in restrained capital spending and slow economic momentum.
After touching an all-time high of 26,373.20 on January 5, the benchmark Nifty 50 failed to maintain those levels and has declined by nearly 2% so far this month. Market experts believe that in the near term, trading is likely to remain stock-specific due to the ongoing earnings season and global uncertainties. They advise long-term investors to accumulate fundamentally strong stocks on declines.
Among preferred long-term picks, analysts highlighted Bajaj Finance. The stock last closed at ₹945.95 and carries a target price of ₹1,200, implying a potential upside of about 27%. The company reported strong business growth during the festive period from Navratri to Diwali, supported by consumption-led demand. Structural reforms in income tax and GST have helped improve consumer sentiment and spending. However, credit costs stayed elevated in the second quarter due to stress in the two-wheeler, three-wheeler and MSME segments. Management noted that the rise in gross non-performing assets had a seasonal element, with MSME and captive businesses contributing more significantly.
