Nilesh Shah, MD of Kotak AMC, anticipates a cautiously optimistic outlook for Indian equities in 2026. He predicts a double-digit earnings rebound in FY27, with mid-cap stocks potentially outperforming large and small caps, albeit narrowly. Shah notes that 2025 was a subdued year for the market, but India's structural growth story remains strong, supported by domestic consumption, infrastructure, and policy reforms. He advises focusing on quality stocks in sectors with structural tailwinds.