Why 2026 looks more favourable for markets despite smallcap pain: Dhiraj Relli explains

India’s equity market enters 2026 on a firmer footing, supported by earnings recovery, robust SIP flows, favourable policies, and manageable inflation. While large caps remain core, small- and mid-cap gains are likely to be selective. Investors are advised to prioritise quality, valuations, and diversification, with modest allocations to gold and silver, while remaining mindful of global macro risks and domestic vulnerabilities.