Gurmeet Chadha, Managing Partner and Chief Investment Officer at Complete Circle Consultants, has shared a snapshot of how different asset classes are expected to perform, based on recent interactions with senior portfolio managers, investors, and promoters.
Chadha’s insights come at a time when multiple triggers, from domestic policy actions to global developments, are likely to influence market sentiment. His outlook provides a nuanced view on where opportunities and caution zones lie, helping investors align their strategies across Indian and global equities, bonds, and commodities.
Indian equities: A constructive setup
According to Chadha, Indian equities may be better positioned in 2026, especially following interest rate cuts and tax reforms. He notes that markets typically respond well to such structural moves, albeit with a lag.
“Valuations have seen both price and time correction, making the setup for 2026 relatively constructive,” he said. Among the key triggers he identifies are the EU-India Free Trade Agreement, the Union Budget, and corporate earnings.
Precious metals: Caution advised on silver
Chadha advises caution in the precious metals segment, particularly with silver. He suggests that investors maintain a balanced exposure, recommending a 5–10% allocation in gold and silver combined.
“Be cautious, especially on silver. Don’t go overboard,” he remarked, pointing to the heightened volatility in the space.
Global equities and AI trade: Moderation ahead
On the global equity front, Chadha expects a more tempered outlook in 2026. He believes the AI trade, which saw considerable momentum in recent months, may witness some profit-taking or moderation going forward.
Bonds: Long duration may outperform
Chadha sees potential in long-duration bonds, noting that some volatility could be offset by structural triggers. He highlights India’s possible inclusion in the global bond index on January 14 (a move he believes has a high probability) as a key catalyst, along with relatively better fiscal health.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
