India's 2026 Earnings Growth to Hit 16-18%, FII Selling Nears End: Julius Baer

• Mark Matthews of Julius Baer forecasts 16-18% earnings growth for India's Nifty in 2026, potentially making it "the year of India."
• Growth is expected from lagged effects of interest rate/tax cuts, a low base, and renewed investor interest beyond US tech.
• Matthews believes foreign institutional investor (FII) selling, which impacted 2023, is largely complete, as funds were reallocated to China.
• He is constructive on US equities, expecting a "Santa Claus rally" and continued AI-led tech bull market, comparing it to 1997/98.
• Cautious on gold short-term due to recent sharp rise, but positive long-term due to persistent fiscal imbalances in developed economies like the US.

Why It Matters: India poised for strong earnings growth in 2026 as FII selling subsides and global investors diversify.