Singhania: 2026 Indian Equities to See Low-Teen Returns, Errors Costly

• Sunil Singhania predicts low-to-mid teen returns for Indian equities in 2026, emphasizing discipline and stock selection over momentum bets.
• Positive factors include improving macro, interest rate cuts, strong corporate balance sheets, and expected 14-15% profit growth.
• Overweight on Pharma (strong moat), Financials (structural role), and Specialised Engineering (defence, railways, exports).
• Defensive on IT services due to growth challenges, AI disruption; caps Metals exposure at <10%.
• Advises extreme selectivity for IPOs and flags US tariff issue as a key risk, not geopolitics.

Why It Matters: 2026 Indian equity returns will be moderate, demanding careful stock selection and avoiding mistakes.