Indian equities are poised for recovery in 2026, driven by strong domestic economic fundamentals like robust GDP growth and contained inflation, according to a Motilal Oswal Financial Services Ltd (MOFSL) report. Despite underperforming global markets in 2025 due to geopolitical uncertainty and foreign investor outflows, domestic institutional investors provided a counterbalance. Policy actions by the RBI and government are expected to boost growth, with a bilateral trade agreement with the US identified as a key catalyst for renewed foreign investment.