Rohit Sarin Predicts Financials, Consumer Discretionary to Lead 2026 Market Rally

• Rohit Sarin of Client Associates expects financials and consumer discretionary sectors to drive equity markets in 2026, fueled by domestic demand and consumption recovery.
• Large-cap IT stocks are projected to regain value in 2026 as global macro conditions improve and demand stabilizes, with a preference for large-cap over mid-cap IT.
• India's macroeconomic fundamentals remain strong; INR depreciation in CY2025 seen as tactical by RBI to preserve export competitiveness, not a structural concern.
• Preference for large-cap stocks in 2026 due to favorable valuations, better risk-reward balance, and greater resilience compared to mid- and small-caps.
• Indian markets are anticipated to deliver a 10-15% rally in 2026, driven by mean reversion, potential domestic consumption growth, and increased FII allocation.

Why It Matters: Rohit Sarin forecasts financials, consumer discretionary, and large-cap stocks to lead India's market growth in 2026.