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Indian Stocks to Soar in 2026?
4 Dec
Summary
- Indian stock market poised for rebound in 2026.
- Strong macro factors and earnings growth expected.
- Global slowdown identified as a major risk.
Ridham Desai of Morgan Stanley India predicts a significant upturn for the Indian stock market in 2026. He highlights strong macro indicators, healthy earnings growth, and improving valuations as key drivers for this expected surge. This outlook contrasts with the market's recent underperformance over the past year.
Desai notes that India's growth is beginning to accelerate, and market valuations have corrected, making them more attractive. He anticipates nominal growth to enter double digits, potentially making India the world's fastest-growing earnings market. Despite concerns about an AI-driven bubble, Desai believes it may have more longevity than widely expected.
However, potential risks loom. A global economic slowdown or an unforeseen shock, such as a war, could derail India's market recovery. Even US tariffs, while currently impacting only a small portion of India's GDP, could affect sentiment. A significant global downturn could push the Nifty 50 towards a bear market scenario.
