Archive · 28 Dec 2025
India's 2026 Market Outlook: Selective Growth
India's stock market is expected to grow by 12-15% in 2026, with no huge rallies.
The economy is strong, with good growth and low inflation.
However, foreign investors have been selling Indian stocks due to concerns about the rupee and trade deals.
Some companies like DMart, TCS, and Ashok Leyland are doing well and could be good investments.
The market is focused on specific opportunities rather than broad growth.
The IT sector is showing signs of recovery, with TCS and HCL Tech being preferred picks.
The crypto market has seen mixed performance, with Bitcoin falling 30% from its high.
Overall, while there are some challenges, the outlook for India's market and economy is positive.
India's stock market is expected to deliver 12-15% returns in 2026, with no scope for a runaway rally above 15%.
India is in a 'Goldilocks setting' with robust GDP growth of 7.3% in FY26 and controlled inflation at 2%.
FPIs withdrew ₹3,141.56 crore from Indian markets on December 26, 2025, due to currency concerns and valuation worries.
Earnings growth is expected to accelerate in Q3 FY26, driven by sectors like automobiles, financials, and telecom.
An India-US trade deal is anticipated in early 2026, which could boost the economy and markets by addressing trade deficits and rupee depreciation.
- Who
- VK Vijayakumar, CLSA, DMart, TCS, Ashok Leyland, Amber Enterprises, Foreign Portfolio Investors (FPIs), Sugandha Sachdeva, Nischal Shetty, WazirX
- What
- Market outlook for India in 2026, FPI outflows, economic projections, stock-specific analyses, IT sector performance, and crypto market trends
- When
- 2025 and 2026
- Where
- India
- Why
- To provide insights into the Indian stock market performance, economic conditions, investment opportunities, IT sector outlook, and crypto market trends
- Expected Market Return (2026)
- 12-15%
- Projected GDP Growth (FY26)
- 7.3%
- Projected CPI Inflation (FY26)
- 2%
- Expected Earnings Growth (FY27)
- 15%
- FPI Outflows (2025)
- ₹1,58,407 crore
- FPI Outflows (December 2025)
- ₹22,130 crore
- FPI Outflows (December 26, 2025)
- ₹3,141.56 crore
- FPI Outflows (Equity)
- ₹1,556.99 crore
- FPI Outflows (Debt)
- ₹1,584.68 crore
- Indian Rupee Depreciation (2025)
- 5.5%
- DMart Store Expansion (Annual)
- 15–20%
- Ashok Leyland Volume CAGR (FY27–28)
- 10%
- TCS AI Services Revenue (Annualised)
- USD 1.5 billion
- TCS Next-Generation Services Revenue
- USD 11 billion
- Amber Enterprises Electronics Growth (FY26)
- 40%–45%
- Amber Enterprises Electronics Margins (FY26)
- 8%–9%
Sources
FPIs pull out ₹3,142 crore as year-end selling intensifies
India in a Goldilocks setting, but a runaway rally unlikely in 2026: VK Vijayakumar of Geojit
Rupee to Weaken Past 90/USD in 2026: MUFG Flags Tariffs, FDI Slump Amid RBI Interventions
FIIs Set For 2026 Comeback, Analysts Forecast Inflows Amid Strong GDP & Earnings Recovery
DMart, TCS, Ashok Leyland: CLSA flags big investment themes as 2026 approaches
GST cuts to EV push: Why Nifty Auto may keep beating the Indian stock market in 2026 - Buy, Sell or Hold?
US deal alone insufficient to secure India’s long-term trade, export growth: CII Director General Chandrajit Banerjee
8 of 10 BSE stocks did not beat ‘boring’ SBI FD
ICICI Prudential midcap, Kotak Multicap, DSP Smallcap, Mirae Asset Flexicap, Helios Large and Midcap et al: Your guide to best performing funds of 2025
New year, new yields: Why 2026 is the year for bond investors to shine
'We are the Lakshmi Mittals of AI industry...': Deepak Shenoy on why Indian investors should not fear missing AI boom
Infosys vs TCS vs Wipro vs HCL Tech: Which IT stock to buy ahead of Q3FY25 results?
Bitcoin price retraces 30% from record high. How does crypto market look like in 2026?
Budget 2026 to back growth via demand push and RBI stance: EY economy watch report
Expert view: Broad-based rallies in mid, small-caps like the past cycle unlikely in 2026, says Anand Rathi Chairman
Foreign investors exit Indian stocks at record scale; withdraw ₹1.6 lakh cr in 2025
Foreign Investors Pull Out At Record Pace, Here’s What Triggered The ₹1.6 Lakh Crore Exit From Indian Stocks?
Macro Data, FPI Trading To Steer Markets This Week, Analysts See Range-Bound Moves
Factors that will guide the stock markets this week
Macro data announcements, trading activity of foreign investors to drive markets this week: Analysts
Stocks to buy for short term: Jigar Patel of Anand Rathi suggests these 3 shares with bullish technical indicators
Despite Global Shocks & US Tariffs, India’s Export Outlook Remains Positive For 2026
Will ‘overweight equity’ bets pay-off in 2026? The answer is with AI
