Buckle up for 2026 – India’s stock market is poised for a ‘Goldilocks’ year, delivering about 11 percent returns in an environment of optimal conditions, per a comprehensive new report.
Breaking it down, the analysis projects Nifty to end the year around 28,000-29,000 levels from current marks, driven by 12-14 percent EPS growth. Key enablers include fiscal discipline, with deficits narrowing, and RBI’s pivot to accommodative stance by mid-year.
Sector-wise, renewables, pharma, and autos stand out. EV adoption and green energy push could supercharge related stocks, while healthcare rebounds on export demand. Retail and FMCG sectors thrive on rising rural incomes.
The report draws parallels to past Goldilocks phases like 2017, where similar macro setups yielded bumper returns. FII flows, estimated at $20-25 billion, will amplify domestic SIP momentum crossing ₹20,000 crore monthly.
Watch for headwinds like monsoon variability or US recession risks. Nonetheless, structural reforms in labor and land laws bolster long-term confidence. Investors should prioritize fundamentally sound picks over momentum plays.
In summary, 2026 beckons as a year of measured optimism, rewarding strategic allocation in India’s vibrant equity landscape.