New Delhi, Jan. 21 -- As Finance Minister Nirmala Sitharaman prepares to present the Union Budget for 2026-27, markets are watching closely for signals on how India plans to balance growth support with fiscal discipline at a time of heightened geopolitical and macroeconomic uncertainty. With uneven global growth, volatile capital flows, and tighter financial conditions clouding the outlook, the country's relative macro stability has emerged as a key differentiator.

According to domestic brokerage firm Axis Securities, markets are likely to favour a budget that sustains growth without compromising medium-term fiscal consolidation.

India's real GDP growth is estimated at around 7.4% in FY26, supported by government capital expenditure, re...