Prashant Jain Predicts 12% Market Return in 2026, Banks to Outperform

• Prashant Jain, CIO of 3P Investment Managers, forecasts up to 12% market returns in 2026, with banks leading the performance.
• He prefers large banks due to their digital banking advantage and expects strong profit growth for 1-2 years.
• Nifty offers the best value and risk-reward; mid and small-cap valuations are not as attractive.
• Jain holds an overweight view on Pharma (older companies, hospitals, CDMOs) and large life insurance companies.
• FIIs may return in 2026 as the Indian market's premium normalized, potentially making 2026 better than 2025.

Why It Matters: Prashant Jain forecasts a 12% market return in 2026, with banking sector leading the growth.