Indian equity markets poised for corporate earnings-led revival in 2026: Report
New Delhi [India]: Antique Stock Broking Limited’s India Equity Strategy 2026: Indian equity markets are poised to deliver a stronger performance in 2026, supported by a likely recovery in corporate earnings, improving macroeconomic conditions and a potential revival in foreign investor flows, according to the earnings redux report.
The report stated that after a difficult 2025 marked by declines in earnings and exits of foreign portfolio investors, the outlook for the 2026 calendar year looks more constructive.
Antique expects India’s “Goldilocks” phase, characterized by strong growth, moderate inflation and supportive policy, to continue, aided by measures already taken by the government and the Reserve Bank of India.
The brokerage firm also emphasized that the expected conclusion of bilateral trade agreements with the United States and the European Union is a positive development for the medium-term economic and market outlook.
“CY26 could be a better year for the broader Indian markets as corporate earnings and FPI flows may bounce back. India’s ‘Goldilocks’ phase is likely to continue in CY26, given the right policy intervention already undertaken by the government and the RBI, as well as the bilateral trade agreement with the US and EU expected to be finalized in the near term,” the report said.
Antique projects Earnings per share will grow at a compound annual growth rate of 16 per cent between FY26-28, a marked improvement over the lower earnings growth recorded in the previous period.
The brokerage also notes that corporate earnings tend to follow wholesale price inflation and nominal GDP growth, both of which are expected to normalize, providing a supportive backdrop for profitability across sectors.
Sectorally, the brokerage firm expects a revival in private capital spending to emerge as a key investment theme in 2026. The financial sector, particularly banks, asset management companies and insurance companies, is also expected to benefit from the earnings growth cycle supported by domestic macro stability.
In addition, Antique identifies select discretionary consumption segments, as well as some mid- and small-cap stocks, as areas likely to be a focus for investors.
The Antique report also forecasts a revival in FPI equity inflows in 2026, supported by reasonable valuations relative to other markets. The bank reiterated that these factors, along with stable domestic inflows, could support an earnings-led recovery in Indian equities in 2026 after volatility seen in the previous year.
“Indian equities are in a mature bull market, with broad indices trading close to 52-week highs, but there are sharp sectoral divergences,” Antique said.
This article has been generated from an automated news agency feed without modifications to the text.
