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Equity is the New Gold: India Stocks Set for 2026 Rally
1 Jan
Summary
- Indian equities are positioned as the preferred asset over precious metals for 2026.
- A new commodity cycle, particularly in base metals, is expected to drive market gains.
- Beaten-down PSU stocks are identified as tactical opportunities before the Union Budget.
Indian equities are emerging as the preferred asset class over precious metals, a shift that could define 2026 market performance. Rohit Srivastava, Founder of Indiacharts, advocates for this rotation, coining the phrase "equity is the new gold." This strategic move away from overbought safe-haven assets like gold and silver toward equities is underpinned by an anticipated commodity cycle, particularly in base metals.
Srivastava foresees a substantial upside for Indian markets, potentially expanding by 20-30%, rather than the conservative 5-10% many investors expect. Key triggers include a weakening US dollar, anticipated US interest rate cuts, and potential Federal Reserve bond-buying. He identifies 26,500 as a critical breakout level for the Nifty, with strong support near 25,800.
Opportunities are also present within the public sector undertaking (PSU) space, especially in stocks that have lagged recent gains. Accumulating beaten-down PSU stocks like REC, Power Finance Corporation, NTPC, and GAIL before the Union Budget is seen as a tactical move. Recent corrections have also created attractive entry points in mid- and small-cap stocks, with the mid-cap index continuing to outperform.
