Page 38 - Banking Finance February 2026

ARTICLE

Positioning

Portfolios Amid

Global and

Domestic Market Manoj Trivedi

Director of Strategy
Shifts Maxiom Wealth

Even as global trade slows, Indian firms have adapted. Nearly 87% of them are focusing more on
domestic markets, building resilience against external shocks. Steady inflows from Indian investors
have also helped counter any foreign outflows from equities.

T he year 2025 is turning out to be a test of balance chains, favouring domestic or regional growth plays. Sectors

like technology, banking, and energy are seeing more
for investors. Global markets are slowing, central
banks are cautious, and geopolitical moves are re-
wiring trade flows. Amid this, India's steady growth and localisation of investments.
domestic liquidity offer a measure of stability. The question India's Steady Hand
begets, how do you position your portfolio to ride these shifts Through 2025, India has maintained solid momentum, with
without losing sight of growth?
growth tracking around 6.6% ahead of most major econo-
mies. This strength is driven by sustained government capi-
Slower Global Growth tal expenditure, healthy corporate earnings, and foreign
The IMF expects global growth to ease slightly from 3.3% investments flowing into manufacturing and infrastructure.
in 2024 to about 3.2% in 2025, and further to 3.1% in 2026.
Advanced economies will likely stay around 1.5%, while Even as global trade slows, Indian firms have adapted.
emerging markets hold near 4%, but with higher swings in Nearly 87% of them are focusing more on domestic mar-
performance. Rising geopolitical tensions, tariff barriers, and kets, building resilience against external shocks. Steady in-
policy changes by central banks are shaping a more defen- flows from Indian investors have also helped counter any
sive mood. Inflation is uneven globally speaking, higher in foreign outflows from equities.
the US, softer elsewhere and in India. Central banks are
treading carefully. The Federal Reserve may hold rates firm The Nifty 50 has gained about 8% so far this year. Earnings
till early 2026, while others could begin easing gradually. growth has moderated a bit due to slower exports and soft
consumption, but reforms in infrastructure, logistics, and
Trade, too, is in transition, thanks to Trumponomics' focus taxation continue to provide a strong base for the next phase
on tariffs. Companies are rethinking cross-border supply of growth.

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