Avinash Agarwal: Real Estate is 2026's Contra Bet; Midcaps Poised for Growth

• Avinash Agarwal of Bandhan Life identifies real estate as a strong contra bet for 2026, citing sector corrections, reasonable valuations, and rate cuts boosting demand.
• He anticipates 2026 will outperform 2025, especially for mid and small-cap segments, driven by improved earnings, rate cuts, and GST reforms.
• Bandhan Life is positive on the capital markets value chain, highlighting the financialization of the economy and capital-light businesses.
• A new midcap fund will launch in early 2026, as midcaps are seen as attractive based on the Price/Earnings-to-Growth (PEG) ratio despite overvaluation concerns.
• Favors domestic economy-focused sectors over export-oriented ones, viewing midcaps as a strong proxy for India's growth story.

Why It Matters: Avinash Agarwal tips real estate as a 2026 contra bet, foreseeing strong growth for midcaps and domestic sectors.