Market strategy: How should investors rebalance portfolios for H2CY26? Analysts favour banks, auto, metals, healthcare

Analysts recommend portfolio rebalancing for H2CY26, favouring banking, auto, metals and healthcare sectors as Indian equities show improved valuations with Nifty 50 trading at 18.8x forward P/E, around a 10% discount to its long-period average. Banking is expected to outperform as NIM pressure from RBI's cumulative 125-bps repo rate cut eases and FCNR deposit measures strengthen funding profiles. Credit growth has stayed in the 15-18% range, while auto demand remains supported by the September 2025 GST rate cut, with double-digit volume growth expected through September.