2026 Outlook: AI Boom, Global Easing & India's Resilience Shape Future Markets

• Global markets showed extraordinary resilience in 2025, with MSCI All-Country World Index up 20.6% despite significant headwinds.
• The AI revolution is viewed as a productivity miracle, not a bubble, with real earnings and modest multiples, significantly impacting Indian IT.
• Central banks globally are easing, weakening the dollar and supporting emerging markets, while fiscal stimulus boosts the global economy.
• India stands out with strong reform momentum, higher growth estimates, and a domestic-focused economy offering a hedge for FIIs.
• While powerful tailwinds exist, extreme market bullishness and risks like China's export model necessitate investor vigilance.

Why It Matters: 2026 brings tailwinds from AI, policy easing, and India's growth, but market optimism poses risks.