India to Outperform Global Markets in 2026; Asset Allocation Crucial: S Naren

• ICICI Pru MF's S Naren predicts Indian markets will outperform global peers in 2026 after a "year of hibernation" in 2025.
• Despite strong macroeconomic fundamentals in 2025 (low deficits, low inflation, strong growth), Indian rupee underperformed.
• Naren emphasizes India's strong growth story and demographic profile for long-term investors.
• Recommends asset allocation with a slightly higher equity exposure, given India's recent underperformance.
• Warns against overvalued precious metals and global markets, especially US NASDAQ, advising a cautious approach.

Why It Matters: S Naren forecasts India's market outperformance in 2026, stressing asset allocation and caution on overvalued assets.