HDFC Securities Projects 2026 as Balanced Year for Indian Markets Amid IPO and FII Challenges

HDFC Securities forecasts a 'Goldilocks' year for Indian markets in 2026, anticipating around 11% returns and 16% Nifty earnings growth supported by policy easing, stable currency, and easing global risks. Key sectors include metals, BFSI, capital goods, and defense, with AI-driven growth expected in IT. However, a large IPO pipeline exceeding Rs 2.5 lakh crore may strain liquidity, while foreign institutional investor outflows and valuation concerns pose risks to market stability.