New Delhi: India’s equity markets are poised for a strong festive quarter, driven by rate cuts, GST 2.0 reforms and improving domestic liquidity, a report said on Wednesday.

The second half of FY26 will deliver broader market strength, led by financials, consumption, infrastructure, and power sectors, as policy reforms and festive sentiment fuel fresh opportunities, according to the report from investment platform Smallcase.

Renewed FII inflows, credit expansion, and healthy earnings momentum are likely to power the next leg of the market rally, the report said.

Analysts said that microfinance, consumer discretionary, and public sector banks may emerge as key beneficiaries of this trend.

"GST cuts are improving affordability, while rate cuts are easing credit flow. Urban and rural dem

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