In a confident forecast for India’s equity markets, Vipul Bhowar, Director at Waterfield Advisors, has projected strong double-digit returns by Diwali 2026, citing robust earnings visibility, sectoral rotation, and resilient domestic demand. Speaking to investors and analysts on October 18, 2025, Bhowar emphasized that despite global headwinds, India’s macroeconomic fundamentals remain intact, and selective sectoral exposure could unlock significant alpha over the next 12 months.
Bhowar’s bullish stance is anchored in five sectors: metals, quick-service restaurants (QSR), building materials, financial services, and defence manufacturing. These sectors, he argues, are poised to benefit from a combination of policy tailwinds, capex revival, and consumer demand. He also advised investors to stagger entries, focus on fundamentals, and avoid chasing momentum in overheated pockets like small-cap speculative counters.
🧠 Key Highlights from Vipul Bhowar’s Diwali 2026 Market Outlook
| Element | Details |
|---|---|
| Forecast Horizon | Diwali 2025 to Diwali 2026 |
| Expected Returns | Strong double-digit (12–18%) |
| Bullish Sectors | Metals, QSR, Building Materials, Financials, Defence |
| Investment Strategy | Staggered entry, midcap bias, earnings visibility |
| Risk Factors | Global rate volatility, geopolitical tensions |
| Preferred Style | Bottom-up stock picking, sector rotation |
Bhowar noted that India’s corporate earnings are expected to grow at 13–15% CAGR, supported by stable inflation, GST buoyancy, and PLI-linked manufacturing gains.
📊 Timeline of Market Events Influencing Bhowar’s Outlook
| Date | Event Description |
|---|---|
| July 2025 | Q1 earnings beat estimates across infra and BFSI |
| August 2025 | Fed delays rate cuts, global volatility spikes |
| September 2025 | India’s PMI hits 58.2, highest in 18 months |
| October 2025 | Bhowar releases Diwali outlook |
The Nifty 50 and Sensex have recovered from August lows, with midcaps outperforming largecaps in the last quarter.
🗣️ Reactions from Market Experts, Fund Managers, and Retail Investors
- Fund Manager, Mumbai: “Vipul’s sector picks align with our own overweight positions. Defence and QSR are under-owned.”
- Retail Investor: “Good to see a structured view. Metals were off the radar, now back in focus.”
- Equity Strategist: “The call is bold but backed by earnings and policy momentum.”
| Stakeholder Group | Reaction Summary |
|---|---|
| Institutional Investors | Rebalancing portfolios toward Bhowar’s picks |
| Retail Traders | Exploring SIPs in sectoral mutual funds |
| Analysts | Validating sectoral thesis with macro data |
| Media | Framing it as a Diwali 2026 investment roadmap |
Bhowar also cautioned against overexposure to high-beta stocks and recommended portfolio hedging via index options.
🧾 Sectoral Snapshot: Vipul Bhowar’s Bullish Picks for Diwali 2026
| Sector | Key Drivers | Top Themes | Investment Horizon |
|---|---|---|---|
| Metals | Global supply constraints, infra push | Aluminium, steel exports | 6–12 months |
| QSR | Urban demand, brand consolidation | Franchise-led expansion | 12–18 months |
| Building Materials | Real estate revival, infra capex | Cement, tiles, adhesives | 9–15 months |
| Financial Services | Credit growth, fintech integration | NBFCs, private banks, AMCs | 6–12 months |
| Defence | PLI, Make in India, exports | Aerospace, DRDO-linked firms | 12–24 months |
The QSR and defence sectors, Bhowar noted, are still in early stages of institutional accumulation and offer valuation comfort.
🧭 What to Watch in the Next 12 Months
- Q3 Earnings Season: Key for validating sectoral momentum
- Budget 2026: Likely to boost infra and defence allocations
- Global Rate Cycle: Fed and ECB decisions to impact FII flows
- IPO Pipeline: Midcap listings in QSR and fintech to watch
Bhowar concluded by urging investors to “stay invested, stay informed, and stay disciplined,” emphasizing that India’s structural story remains intact.
Disclaimer
This news content is based on verified market commentary, financial interviews, and sectoral data as of October 19, 2025. It is intended for editorial use and public awareness. The information does not constitute investment advice, portfolio recommendation, or financial endorsement and adheres to ethical journalism standards.
A cozy Kolasin Montenegro hotels for mountain lovers. Ski slopes, trekking trails, and local cuisine are nearby. Rooms are equipped with amenities, Wi-Fi, parking, and friendly staff are available to help you plan your vacation.