1.GST collections:
GST collections in April 2026 touched a record ₹2.43 lakh crore, up 8.7% YoY, with net collections at ₹2.11 lakh crore (+7.3% YoY), underscoring continued fiscal buoyancy and compliance strength. However, the composition of collections highlights a divergence—growth was largely import‑led, while domestic GST revenues rose a more modest ~4.3% YoY, suggesting consumption remains steady but not overheated.

2.Revival in credit growth supports GDP momentum:
Domestic financial conditions remain supportive, with bank credit growth sustaining low‑ to mid‑teens momentum into 2026, comfortably outpacing deposit growth. RBI data points to stronger traction across corporate loans, retail credit and infrastructure‑linked segments, reflecting improving activity, capex pipeline visibility and transmission to earnings. Historically, such broad‑based credit expansion has had a positive multiplier effect on GDP growth, making it an important pillar for the medium‑term outlook.

3.Global uncertainty remains a near term overhang:
External headwinds have intensified, with renewed Middle East tensions pushing Brent crude above the $110–115/bbl range and amplifying pressure on inflation, the current account and the INR. Higher energy prices and geopolitical risks are also weighing on near‑term market sentiment and driving episodic volatility, even as India’s macro buffers and policy framework provide some insulation against shocks.

4.Outlook:
near term volatility, constructive medium to long term: While elevated crude prices, geopolitics and global uncertainty are likely to keep markets volatile in the near term, India’s domestic growth levers—policy‑supported consumption, resilient GST collections, sustained credit growth and structural trade tailwinds—remain firmly in place. Overall, the medium‑ to long‑term outlook for Indian equities remains constructive, with periods of volatility better viewed as opportunities for calibrated allocation rather than a reason to turn cautious.