Nilesh Shah Predicts Bumper 2026: FPIs Return, Smallcaps to Shine Again

• Nilesh Shah, MD of Kotak Mutual Fund, predicts a strong 2026 for the Indian stock market, driven by improved corporate earnings.
• He expects Foreign Institutional Investors (FPIs) to return to India as valuations become balanced, despite recent outflows.
• A necessary 'reset' in smallcap stocks is seen as healthy, paving the way for future opportunities in this segment.
• Midcap stocks are considered balanced, offering gradual investment opportunities for long-term investors.
• SIP investors must reset return expectations; asset allocation and long-term discipline will be crucial for navigating market volatility.

Why It Matters: Nilesh Shah forecasts a strong 2026 for Indian markets, emphasizing earnings, FPI return, and disciplined investing.