India: Growth set to cool in early 2026 – DBS

💡 DMK Insight

India’s projected GDP slowdown in early 2026 could shake investor confidence now. While the firm growth in the latter half of FY26 is promising, traders should be wary of the potential ripple effects on sectors sensitive to economic performance. A slowdown could lead to reduced consumer spending and impact sectors like retail and manufacturing, which are critical for day traders to monitor. Additionally, if this forecast prompts shifts in monetary policy or investor sentiment, we could see volatility in the Indian Rupee and related markets. Keep an eye on key economic indicators leading up to this period, as they could provide early signals of changing trends. Watch for resistance levels in the INR against major currencies, as shifts in GDP growth expectations could lead to significant price movements in forex pairs involving the rupee.