Market Outlook 2026: Kotak Expects Strong Equity Gains As Gold Also Shines In Safe-Haven Rally

The report highlights India’s economic resilience. Domestic demand remains strong. Policy support continues. Investors have shown confidence even in volatility. Foreign selling failed to break sentiment. Corporate performance sustains positive outlook. Stability has become India’s competitive strength.

What Does Kotak Expect From Nifty 50 By December 2026?

Base target is 29,120. It is based on assumed P/E of 20 and FY28 EPS forecast of ₹1,456. Bull case sees 32,032. Bear case 26,208. Earnings expected to rise double-digits. Banks, autos, metals led 2025 rally. IT and FMCG lagged. Outlook remains selectively positive.

Which Sectors Could Lead Gains In 2026?

Kotak highlights BFSI. Credit growth stays strong. Technology could rebound with global recovery. Healthcare sees structural demand. Hospitality has strong consumption tailwinds. Midcaps and smallcaps may remain uneven. Large-caps show better risk-reward. Allocation strategy demands caution with valuations.

How Did Gold And Silver Surprise Investors In 2025?

Gold surged over 55%, crossing $4,000 per ounce. In India, rupee weakness pushed prices higher. Silver gained more than 100%. Supply shortages and safe-haven buying drove demand. Kotak expects strong interest to continue. Precious metals remain insurance in uncertain times. Retailholders build reserves.

What About Crude Oil And Industrial Metals?

Crude dropped 19% in 2025. Oversupply pressures outlook. Kotak advises caution. Copper and aluminium benefit from electrification. But volatility remains. Inventory cycles will drive prices. Energy transition boosts some metals. Other commodities may remain range-bound. Demand signals are closely watched.

Is India Still Under-Invested In Equities?

Only 9.5% households actively invest according to SEBI data. But 63% know market products. That gap shows untapped scale. Broking access expansion can change cycles. Retail investors shape long-term direction. Inclusion efforts remain important. Penetration is still low in global comparison.

What Does Kotak Advise For 2026 Investors?

Equities for growth. Gold for safety. Diversification matters as risks persist worldwide. Markets reward patience not panic. Policy and earnings show strength. India’s story continues upward. Investors must stay disciplined and realistic. Strategy beats emotion when uncertainty is high.