The Indian market is entering 2026 after a significant period of consolidation in 2025. If 2024 focused on new narratives and 2025 was about normalisation, then 2026 will be all about convergence. Indian equities in 2025 delivered moderate gains amid volatility, with large caps leading while small caps declined.
Nifty 50 rose 11.88% fuelled by a second-half recovery despite early headwinds like FII selling, Trump tariffs, and rupee weakness. Top sectors included Nifty PSU Bank (31%), Metal (30%), and Auto (25%), while Media (-20%), Realty (-16%), and IT (-10%) lagged sharply. Broader markets showed divergence during the same period: Nifty Midcap 150 (+6%), but Nifty Smallcap 250 (-5%). (Source: NSE Indices Data)
Environment
Expect robust macro stability with GDP growth above 7%, moderating inflation, and further RBI easing amid benign global rates. Government initiatives like GST simplification, tax cuts, and capex will boost consumption and infrastructure, countering US trad…
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