New Delhi, March 4 Longer‑tenor government securities are looking attractive with much of the "uncertainty already priced in," and the risk–reward balance in Indian markets is better due to strong domestic growth, a report said on Wednesday.
The report from Bajaj Finserv AMC said domestic growth traction, supportive policy changes and improved global exposure through trade agreements have led to "the risk–reward balance appearing meaningfully better."
Though the asset management firm favored long tenor G-secs it said that yields may remain range‑bound in the short term given huge supply.
Regarding the recent progress on trade deals, the firm said that India’s structural cost advantage in manufacturing should limit the impact of opening sectors to US imports, to select pockets such as premium cars and high-end alcohol, rather than the broader industrial ecosystem.
Sorbh Gupta, Head‑Equity, Bajaj Finserv AMC, said recent trade agreements, the Union Budget and RBI policy all point to India positioning itself for a stronger domestic growth cycle led by manufacturing and investment, the report further said.
“RBI guided for a slightly firmer inflation trajectory, raising its FY26 estimate to 2.1 per cent from 2 per cent, alongside higher expectations for the first half of FY27 as well. This is consistent with an economy emerging from a very low-inflation phase and now experiencing a cyclical growth recovery,” said Siddharth Chaudhary, Head-Fixed Income, Bajaj Finserv AMC.
Indian equity markets have begun 2026 on a volatile note, echoing the sharp correction and risk aversion seen in early 2025, though this time against a relatively stronger domestic macro backdrop, the report noted.
“However, sentiment improved meaningfully following the back-to-back developments, particularly the India–US trade announcements,” it said.
As consumption momentum improves and capacity utilisation rates rise, further momentum in investments going into FY27 could be expected, with higher growth performance already being seen in manufacturing, financial, real estate and professional services and hospitality sectors, a recent report has said.
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