Nilesh Shah, a market veteran and member of the Prime Minister's Economic Advisory Council, predicts a strong year for Indian equity markets in 2026. He anticipates double-digit corporate earnings growth, potentially boosted by foreign portfolio investor (FPI) inflows. Shah notes that while long-term returns track earnings, short-term performance is influenced by sentiment, fund flows, and global events. He suggests a potential 'small cap reset' could reward investors, but acknowledges that factors like rupee depreciation and global developments could impact market balance.