Indian Equities: Cautious Optimism for 2026 Amid Realigned Returns

• Moneycontrol Poll 2026 forecasts cautious confidence for Indian equities, expecting moderate returns after 2025's underperformance against global peers.
• Nifty 50 is projected to reach 28,000-30,000 with earnings growth of 8-12%, indicating low double-digit returns rather than outsized gains.
• Valuations are seen as reasonable, with Nifty's forward P/E near long-term averages, and mid/small caps cooling from previous highs.
• IPO activity is expected to normalize in 2026, remaining healthy but below 2025's record levels, emphasizing diversification and valuation discipline.
• Budget 2026 is anticipated to focus on policy continuity and rural demand, with stable rupee expectations and mixed global macro signals including AI bubble concerns.

Why It Matters: Indian markets in 2026 anticipate moderate returns, valuation discipline, and policy continuity amidst global uncertainties.