Union Budget 2026 to Focus on Consumption, Earnings Visibility: Dhiraj Relli on Union Budget 2026 

Delhi, February 1, 2026: India’s Union Budget 2026 is likely to maintain policy continuity, with limited scope for sharp fiscal shifts, according to Dhiraj Relli, Managing Director and Chief Executive Officer of HDFC Securities. Market participants are tracking the Budget for signals on consumption support, earnings visibility, and structural priorities rather than headline-driven measures. 

Fiscal Direction Expected to Remain Evolutionary 

Relli said the government’s fiscal trajectory over the next year is likely to be gradual in nature. “Changes in the budget or fiscal scorecard over the next year are likely to be evolutionary rather than dramatic,” he said, adding that consumption is expected to remain a key focus area through both budgetary and non-budgetary measures to support demand. 

He noted that fiscal flexibility may remain, with a focus on calibrated interventions rather than broad stimulus measures. 

Budget 2026 Likely to Be Incremental 

Compared with the previous Union Budget, Relli indicated that Budget 2026 may be incremental and relatively non-eventful. “We should not expect major fireworks,” he said, adding that investors are likely to assess the Budget through the lens of policy stability and alignment with economic conditions. 

Relli also stated that clarity on execution and continuity will be closely watched in the fine print. 

Earnings Visibility to Guide Investment Strategy 

Dhiraj mentioned that the investment strategy is expected to remain earnings-focused. This is expected to be done with capital allocation favouring companies and sectors offering higher earnings visibility. He added that this approach reflects a preference for execution-led growth rather than narrative-driven positioning. 

According to him, investors are expected to continue prioritising the sustainability of earnings over short-term sectoral rotations. 

Capital Markets and PSU Banks in Focus 

Relli highlighted capital markets and select public sector banks as areas where earnings quality could improve over time. “This is less about the budget itself and more about improving earnings quality,” he said, citing structural reforms, regulatory support, and balance-sheet improvements as contributing factors. According to him, these developments are expected to play out gradually rather than being driven by single policy announcements. 

Union Budget 2026 Schedule 

The Union Budget 2026–27 is scheduled to be presented in the Lok Sabha on February 1, 2026, by Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman.

As part of the Budget Day engagements, the Finance Ministry has also planned interactions with students from across India, aimed at increasing awareness around fiscal policy, governance, and parliamentary processes.

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