Investment Outlook 2026: Varun Saboo sees opportunities in financial sector, FMCG and real estate

As investors look ahead to 2026, Varun Saboo, of Anand Rathi Shares & Stock Brokers, remains bullish on Indian markets, highlighting specific sectors and themes that could deliver promising returns.When asked about attractive investment themes for the year ahead, Saboo said, “Honestly, we are very, very positive on the markets. You’ll remember the last time we came to your show, we were extremely positive on Indian IT and that theme has played out quite well. What looks very good for us going forward is actually the banks in the BFSI space, and we are also very positive on consumers. No, we were very positive on the discretionary consumer space that we still have, but step by step we are turning positive on the consumers. There has also been a GST cut which has clearly shown how the growth is developing in auto names, especially that we have seen. We are very, very confident that things will be reflected in the consumer basket as well, where you have new-age portfolios, which you have to focus on very positively on financial services as a sector.”

The conversation then shifted to consumer durables, especially white goods, which have been affected by erratic weather patterns.

Saboo noted, “Nowadays all the seasons have been quite harsh. It’s not just to do with monsoon or with winters. But we have to remember that these are great stories over a period of time. The penetration in the country in terms of white goods is also quite low. In the short term yes, probably a quarter or two the stocks may not be in favor but I really think you see these plays as a great long term play. Summers could be harsher again. Ultimately when there is a break that At the moment is it a good time to collect these names because the shares are at a big discount. You said about PG Electroplast that the shares have already fallen severely from their highs.

In real estate, Saboo highlighted robust demand and continued upcycle in the sector.

“Look, real estate as a space when you see they generally have a seven to eight year kind of upcycle. The cycles are longer. We’ve had about three to four years of a good cycle. And when you see how things have been when we talk about inventory. When you really go looking for inventory, for example in the commercial space, you hardly get any. There’s a crazy rally going on in the commercial rates that we’re seeing. In residential, also the ones that you actually want to buy are not easily available. So there’s a lot question,” he says.

“It clearly has to do with the great wealth creation that is happening in the country. If you see, all asset classes, be it gold, silver or even equities to some extent, have been doing well for a long time and all these things are helping when it comes to real estate demand. Real estate still seems to be a very attractive sector with a twelve to twenty-four month view. I would still think all these names look good in this sector,” he added. With banking, FMCG, consumer durables and real estate emerging as key focus areas, Saboo’s prospects point to opportunities for investors seeking both growth and long-term value in the Indian market.