Axis AMC: 2026 to See Balanced, Selective Equity Investing After India-US Trade Deal

• Axis Mutual Fund's Shreyash Devalkar and Ashish Naik predict 2026 will be a year of normalized equity returns and healthier valuations.
• The India-US trade deal is identified as a critical development, expected to restart global investment and manufacturing expansion in India.
• 2026 starts with stronger macro support than 2025, driven by domestic demand, policy measures, and a potential bottoming out of the earnings downgrade cycle.
• Investors are advised to adopt a multi-asset approach, balancing Indian equities with global and dollar-denominated assets like gold, due to global uncertainties and the 'debasement trade'.
• The recent market correction is seen as a healthy valuation reset, not a bear market, with large caps becoming reasonable while some mid and small caps remain expensive.