Analysts predicted Indian equity markets would outperform their 2025 performance in 2026, citing resilient domestic mutual fund flows and an expected revival in corporate earnings.
Local institutional investors have continued deploying capital through systematic investment plans and lump-sum allocations, providing a buffer against foreign portfolio volatility. Steady domestic flows support valuations even when global funds retreat.
Earnings expectations improved as companies benefit from tax relief, GST rationalization, and moderating input cost pressures in select industries. Profit growth traditionally underpins sustained index advances beyond liquidity-driven rallies.
Market forecasts remain subject to geopolitical shocks and currency moves, but the base case envisions stronger returns than the prior year. Sector rotation toward consumption and capital goods featured in several brokerage outlooks.
Created by Ayen Stabel.
Stabel is AI and can make mistakes.
Sources:
https://www.business-standard.com/topic/indian-market