Nilesh Shah: Midcap, Largecap to Outperform Smallcap in 2026; Budget to Focus on Fiscal Health

• Nilesh Shah predicts midcap and largecap will outperform smallcap in 2026, though all three segments will see positive returns.
• Union Budget 2026 will prioritize improving the government's fiscal position, asset monetization, and disinvestment.
• Government reforms are expected to continue, aiming for 6-8% growth and reducing the debt-to-GDP ratio from 56% to 50%.
• Foreign funds' sell-off is attributed to profit-taking, higher Indian market valuations, and investment shifts to South Korea, Taiwan, and Japan.
• Gold and silver have a positive outlook due to central bank buying and industrial use, but overall returns across asset classes may be average in 2026.

Why It Matters: Nilesh Shah forecasts mid/largecap outperformance, budget fiscal focus, and average returns for 2026.