Shankar Naren: Indian Stocks to Outperform Global Markets in 2026 After 2025 Slump

• ICICI Prudential's S Naren noted Indian markets underperformed global peers in 2025 despite strong macroeconomic fundamentals and a weak Rupee.
• Naren predicts a turnaround in 2026, with Indian stock markets poised to outperform most global markets, driven by India's strong growth story.
• He identifies India as an attractive long-term investment due to its demographics, recommending a slight increase in equity allocation.
• Investors are cautioned about global risks, including overvalued US Nasdaq/tech stocks and excessive enthusiasm in precious metals.
• Naren advises moderate exposure to gold and silver, which delivered exceptional returns (silver >2x, gold >70%) compared to equity (~10%) recently.

Why It Matters: Indian markets are set for a strong 2026, but investors should balance equity with global risk awareness.