Shailendra Kumar: Banking to lead 2026 market, IT to lag

• Shailendra Kumar predicts the banking sector will lead markets in 2026, maintaining an overweight stance, while the IT sector will lag.
• Indian equities are expected to see a significant recovery in 2026 after underperforming global markets in 2025.
• Large-cap indices are anticipated to deliver superior returns for most of 2026, as small-cap valuations remain elevated.
• Improved earnings and reasonable large-cap valuations are key positive triggers for the Indian market in 2026.
• Additional RBI rate cuts are anticipated in 2026, following a "rare goldilocks period" and rapid disinflation.

Why It Matters: Expert predicts 2026 market trends, favoring banking and cautioning on IT.