India's Capital Markets Set for Strong Rebound in 2026; M&A Deals to Hit $135 Billion

• India's capital markets are projected for a strong rebound in 2026, with fundraising returning to 2024 levels, according to Kotak Investment Banking.
• Mergers and acquisitions (M&A) deal values are expected to surge to $130–135 billion in 2026, driven by momentum from late 2025.
• The recovery will be led by a revival in equity capital markets, particularly initial public offerings (IPOs) and sell-down activities.
• India's robust regulatory framework fosters a credible environment, attracting both domestic and global investors.
• New-age companies delivered 36-37% returns to IPO investors in 2025, outperforming the 12% average, by approaching markets at a more advanced stage.

Why It Matters: India's capital markets are poised for a significant rebound in 2026, fueled by M&A growth and strong investor confidence.