Brokerages like Motilal Oswal Financial Services are optimistic about Indian equities in 2026, anticipating a recovery driven by earnings growth and steady expansion rather than speculative rallies. They project corporate earnings to rebound significantly in FY26 and accelerate in subsequent years, supported by policy stability and investment revival. Motilal Oswal has identified high-conviction stock picks, including Bharti Airtel and State Bank of India, citing strong execution, improving asset quality, and favorable growth prospects for these companies.