Rahul Singh, CIO-Equities, Tata Asset Management, with perspective on the 2026 market outlook.

“As we transition into 2026, the Indian market is moving from a 15-month period of sideways consolidation into a phase of fundamental, earnings-led optimism. With Nifty valuations now normalized at a more reasonable 21-21.5x, the stage is set for corporate profit growth to accelerate from the single digits of 2025 into the mid-double digits. This resurgence is powered by a ‘triple boost’ of policy measures—GST reforms, income tax relief, and interest rate cuts—which have successfully revitalized consumer sentiment at the ground level.

In this environment, the era of chasing overcrowded themes is giving way to a ‘bottom-up’ market where stock selection is key. We believe the most prudent path for investors in 2026 lies in core diversified categories like Flexi Cap and Large Cap funds, alongside Multi-Asset strategies that utilize gold as a hedge against global volatility. By focusing on steady recovery in the Banking and Consumer sectors, we view 2026 as a year of steady, sustainable growth for the disciplined investor.”