Bernstein Cuts India Market Outlook to Neutral, Sees Modest 8% Nifty Gain by 2026

• Global brokerage Bernstein downgraded India market outlook to 'neutral' for 2026, projecting a modest 8% Nifty upside.
• MD Venugopal Garre cites peaking macro environment, moderating GDP growth to 6.5%, and earnings already factored into valuations.
• Bernstein upgraded real estate due to correction, interest rate sensitivity, and expected 50 bps RBI rate cut, seeing it as a 'catch-up' opportunity.
• Consumer staples downgraded due to rising competition from quick-commerce, muted volume growth, and rural demand uncertainty.
• Garre expects 50-75 bps RBI rate cuts, views India-US trade deal impact as short-lived, and AI adoption as a 3-4 year story.

Why It Matters: Bernstein's neutral India outlook for 2026 predicts modest Nifty gains, citing peaking macro and factored-in earnings.