Indian equities experienced a mixed performance in 2025, with major indices like Nifty 50 and Sensex showing positive returns while small-cap indices faced their worst performance in seven years. Analysts anticipate 2026 to be a year of moderation with normalized earnings growth, potentially leading to muted overall returns but sharper stock-level dispersion. Key drivers for 2026 include a potential US-India trade deal, earnings recovery, and FII flows, with some experts predicting double-digit returns and outperformance from mid and small-cap stocks.