India's equity markets showed modest returns in 2025, with Nifty50 up over 10% and Sensex up 8.55%. Edelweiss Mutual Funds anticipates a stronger 2026 for India, driven by improving domestic earnings and balance sheets. Key market triggers include the India-US bilateral trade deal and clarity on the 8th Pay Commission. Precious metals' outperformance is expected to moderate as equities regain leadership. Investors are advised to gradually increase exposure to Indian equities due to reasonable valuations and an earnings upgrade cycle.