Nilesh Shah Predicts Earnings Boom, FPI Surge, Small-Cap Reset for India in 2026

• Market veteran Nilesh Shah expects India's corporate earnings growth to hit double digits in 2026, driving market returns.
• Foreign Portfolio Investor (FPI) flows are projected to improve in 2026, with passive FPIs increasing investment and active FPI selling intensity decreasing.
• Shah views the recent small-cap reset as healthy, predicting mid-caps to outperform due to better earnings growth and reasonable valuations.
• The rupee's depreciation is seen as its natural destiny due to inflation and productivity differentials, not a cause for worry.
• Monetizing India's vast gold reserves (estimated at $5 trillion) is suggested as a key reform to aid fiscal consolidation and economic growth.

Why It Matters: Nilesh Shah forecasts a robust 2026 for Indian markets, driven by strong earnings, FPI return, and a healthy small-cap reset.