Indian Equities Show Positive Outlook for 2026 Driven by Fundamentals and Policy

Indian equity markets are poised for a stronger 2026, driven by improving valuations, realistic earnings forecasts, and robust domestic fundamentals, according to a smallcase managers' report. Analysts anticipate a consumption-led growth cycle, supported by moderate inflation, potential tax and GST reductions, and interest rate cuts. The focus is expected to shift towards earnings-led investing rather than momentum trades, with large-cap stocks becoming more attractive due to a valuation reset.