Agrawal, Chokhani Bet on PSU Banks, Autos for 2026 Amid Capped Market Returns

• Veteran investors Raamdeo Agrawal and Manish Chokhani predict modest index returns for Indian equity markets by 2026.
• They identify PSU banks and the auto sector as key opportunities, driven by credit growth revival and policy support.
• Agrawal, from Motilal Oswal Financial Services, emphasizes visible earnings over valuation-driven bets for alpha generation.
• Chokhani, from Enam Holdings, highlights the need for public sector resource mobilization to reignite 'animal spirits' in the market.
• Both investors suggest an 8-10% index return for 2026, with significant alpha potential in specific sectors due to earnings growth.

Why It Matters: Investors Agrawal and Chokhani favor PSU banks and autos for 2026, expecting modest overall market returns.