Carnelian's Khemani sees strong 2026 for Indian markets, healthy corrections clearing froth

• Vikas Khemani of Carnelian Asset Management is optimistic about Indian markets, predicting 2026 will be a strong year due to earnings recovery and stimulus.
• He views the recent market correction as a healthy cleansing process, creating opportunities for quality investing rather than momentum chasing.
• Khemani advises investors to buy companies within their comfort valuation zone and not try to time the market bottom.
• His firm has avoided sectors like EMS, defence, and railways due to unsustainable valuations, despite being bullish on the broad 'Make in India' theme.
• Carnelian Asset Management is bullish on the Contract Development and Manufacturing Organisation (CDMO) space, citing companies like Laurus Labs and Biocon.

Why It Matters: Expert predicts strong Indian market growth by 2026, advising quality investing.