Analysts see better risk-reward in 2026 even as near-term headwinds persist

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.

Do you think the market is currently…

Is the risk-reward favourable for investing in Indian equities?

Advice for those sitting on cash

Will Silver and Gold outperform Nifty next year?

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, Systematix Group, Ventura Securities.

What should be the strategy if you have cash to invest?

• Staggered/Systematic deployment via SIP/STP phased over 3–12 months
• Equity-focused allocation diversifi ed across large/mid/ smallcaps, ETFs or index funds
• Multi-asset allocation
• Keep some cash/liquidity for corrections/tactical opportunities

Which stock segment do you prefer in 2026?
Large> Mid> Small> Micro caps

Most preferred Sectors:

• BFSI
• IT
• Consumption
• Auto and Metals

Least preferred Sectors:

Favoured market or investment theme outside India: