Experts anticipate a two-phased year for Indian equities in 2026, with initial global volatility potentially capping gains. However, a more buoyant second half is expected as India's growth attracts foreign capital. While largecaps may offer stability, midcaps and smallcaps are predicted to outperform, delivering double-digit returns. The market is expected to be driven by earnings quality and stock selection rather than liquidity, with domestic consumption and capital goods sectors showing strong potential.