Global PE Contraction: Fund Managers Warn of Spillover Risks for India in 2026

• Leading fund managers warn of potential global market volatility and PE contraction in 2026, driven by excessive valuations in developed markets, especially the US.
• Sandeep Tandon (Quant Mutual Fund) highlights 'extraordinary complacency' in the US market as a key risk, predicting a sharp global valuation reset and widespread multiple compression.
• A near-term resurgence in the dollar index, a 'consensus trade' among strategists, is identified as a major trigger for sharp corrections across various assets.
• Taher Badshah (Invesco Mutual Fund) anticipates mean reversion across market variables, including the dollar, earnings growth, and India's relative performance, after years of linear trends.
• Nilesh Surana (Mirae Asset Investment Managers) offers a constructive medium-term view on Indian equities, citing easing macro uncertainty, improving earnings momentum, and receding elevated valuations.

Why It Matters: Fund managers foresee global market volatility and PE contraction in 2026, posing spillover risks for India.