Indian equities are poised for a recovery in 2026, driven by improving earnings, stable domestic macroeconomics, and a calmer geopolitical landscape, according to Motilal Oswal. The brokerage suggests current valuations are reasonable, near their long-period average, and expects earnings growth to fuel market rerating. Motilal Oswal favors diversified financials, IT services, automobiles, telecom, and capital goods sectors for the upcoming year, with specific large-cap stock recommendations including Bharti Airtel and ICICI Bank.