Analysts see better risk-reward in 2026 even as near-term headwinds persist
Indian equities begin 2026 with cautious optimism, despite liquidity concerns and global uncertainties. Market participants anticipate a better risk-reward balance, with reasonable valuations and projected index gains. Sustained returns will depend on a strong earnings rebound in FY27, following a subdued FY26. Experts suggest staggered investment and diversified equity allocations.
Indian equities enter 2026 with a cautiously improving macro and market backdrop. While near-term risks from tight liquidity, elevated yields and global uncertainty could keep sentiment fragile, most market participants see a more favourable risk-reward balance than a year ago. With valuations viewed as reasonable and benchmark indices projected to advance, the sustainability of returns is expected to hinge on an earnings recovery, particularly in FY27, after a subdued FY26.
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Participants: Abakkus Mutual Fund, Aditya Birla Sun Life Mutual Fund, Anand Rathi Shares & Stock Brokers, Asit C. Mehta Investment Intermediates, Axis Mutual Fund, Axis Securities, Bandhan Life Insurance, Bandhan Mutual Fund, Choice Equity Broking, Dolat Capital, Edelweiss Mutual Fund, Elios Financial Services, Emkay Global, Franklin Templeton, Geojit Financial Services, Globe Capital Market, HDFC Securities, ICICI Prudential AMC, ICICI Securities, JM Financial Services, Kotak Mahindra AMC, Kotak Securities, Mahindra Manulife Mutual Fund, Mirae Asset Investment Managers (India), Mirae Asset Sharekhan, Motilal Oswal Financial Services, OmniScience Capital, Religare Broking, Samco Securities, SBI Securities, Group, Securities.