2026 Outlook: AI Bubble Looms, IPO Boom Continues, Midcaps to Shine

• Indian market expects new highs in 2026, with mid and small caps leading the rally, overcoming past underperformance.
• Pankaj Tibrewal highlights potential AI bubble impact on Indian market and continued IPO market boom.
• Key triggers for 2026 include the budget, US trade deal, banking reforms, and strong corporate results.
• FIIs were net sellers for five consecutive years, but domestic investors absorbed selling; FPI positions are light, indicating potential inflows.
• Corporate earnings growth of 13-14% expected in FY27, with banks, auto, and power sectors leading.

Why It Matters: Indian market poised for new highs in 2026 amid AI bubble concerns and continued IPO surge.