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Indian markets, both equities and commodities, are signalling optimism despite global uncertainty, Kotak Securities' 2026 Market Outlook said Wednesday, as it delved into macro trends, sector opportunities and commodity forecasts investors should track in the year ahead.
According to Shripal Shah, MD and CEO, Kotak Securities, India remains a beacon of growth amid global turbulence. "Our outlook for equities is upbeat, driven by robust earnings projections and policy support, while gold is expected to retain its shine as a safe-haven asset in 2026. With rising participation from young investors, the market is set for deeper engagement and wealth creation," Shah added. Gold delivered a stellar performance in 2025, surging over 55 per cent and crossing USD 4,000 per ounce, driven by macro uncertainty, geopolitical tensions and strong central bank buying. Indian gold prices rose 60 per cent, amplified by rupee depreciation. On the industry front, he added, quoting the latest SEBI survey findings, that only 9.5 per cent of households actively invest despite 63 per cent being aware of at least one securities market product in India. "This means India's equity market holds immense untapped potential. Brokerage firms must lead the charge to make investing inclusive and accessible," he said. Indian equities saw a 17 per cent drawdown from September 2024 highs, but the Nifty 50 rebounded to a new all-time high by the end of 2025. Large-caps led gains while mid-caps and small-caps lagged, according to the Kotak Securities report. Automobiles, banks and metals outperformed while IT and FMCG remained weak; domestic investors cushioned persistent FPI outflows, reinforcing confidence in India's equity markets; and robust primary market activity underscores sustained investor optimism and resilience. According to Kotak Securities,the earnings outlook has strengthened, with Nifty profits projected to grow 17.6 per cent in 2026-27E and 14.8 per cent in 2027-28E. The preferred sectors for 2026, according to Kotak Securities, include BFSI, technology, healthcare, and hospitality. In 2025, silver outperformed, gaining 100 per cent, supported by safe-haven demand and structural supply deficits, despite tariff-related industrial headwinds. Crude oil declined 19 per cent as surplus supply overshadowed geopolitical shocks, setting a cautious tone for 2026, the Kotak Securities report has asserted. Base metals like copper and aluminium remain firm underpinned by structural tightness, electrification demand and supply constraints, though volatility persists, it noted. (ANI)
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