Structural trends to drive earnings growth: Kotak MF

Kotak Mahindra Asset Management Company Ltd has released its Market Outlook 2026, offering a comprehensive view of the macroeconomic environment and key investment themes expected to shape India’s financial markets in the coming year.

The report underscores opportunities across equities, fixed income, and thematic sectors, while highlighting global and domestic trends that investors should watch closely.

Nilesh Shah, MD, Kotak Mahindra AMC, said: “Equity returns in FY2026 are likely to be anchored in earnings growth, with India Inc expected to deliver double-digit growth in FY27. This strength is likely to attract foreign portfolio investors, supporting market liquidity. Midcaps are poised to outperform large and small caps, though the margin of outperformance may remain narrow.

“Gold and silver should continue to see upside, aided by sustained central bank buying. Investors are advised to moderate return expectations and adopt a balanced, diversified approach across asset classes to navigate evolving market dynamics.”

Credit growth has started to pick up, indicating improved lending activity. This uptick is reflected in the rising Credit to Deposit Ratio.