The Indian economy is at a critical crossroads as the Union Budget 2026-2027 draws near. Although infrastructure has been updated under the “Capex-first” approach of recent years, a new macroeconomic problem has surfaced: muted nominal growth. The mandate for fiscal policy is reflation for the first time in recent cycles. The upcoming Budget is anticipated to strike a balance between its emphasis on infrastructure and a notable shift toward consumer assistance in order to help the economy return to an optimal inflation level of 4%.

Arun Patel, Founder & Partner at Arunasset Investment Services, has been featured in recent Budget 2026 coverage by Mint and CNBC-TV18, sharing his views on the upcoming Union Budget and the need to balance demand support with fiscal discipline.

In 2025, foreign portfolio investors pulled close to USD 21 billion out of Indian equities. Under normal circumstances, that kind of selling would have left a mark. This time, it did not. Domestic investors quietly absorbed the pressure. SIP flows did not falter, equity mutual funds continued to see money come in, and household participation acted as a steady counterweight whenever volatility picked up.

‘Buy on dips’ is a popular theme in equity investing, and so it should be. The ability to buy cheap when analysts and market pundits say otherwise is golden. The subject, however, does carry its nuances. While buying on dips can deliver strong results when done selectively, it is far from a universal rule. Whether the strategy makes sense depends less on the fall itself and more on what is causing it.

Sector rotation in its simplest form is the reaction of the market to shifts in the economic environment. The various sectors are enjoyed at various stages of the cycle.