Smallcaps keep rallying on domestic buying as earnings spotlight select winners Sandip Sabharwal

Banking is calming down while asset quality stays strong

Indian markets are holding steady after election results, with Sandip Sabharwal pointing to governance and policy continuity as key supports. He says banking stocks are consolidating, yet asset quality remains strong. The earnings season is expected to reward select names, especially auto and power equipment makers, while small and midcaps continue to outperform on persistent domestic flows.