Market Insight: Indian Markets May Deliver Over 10% Returns in 2026; IT and Chemical Stocks Likely to Outperform
Indian equity markets could generate returns of more than 10% in 2026, according to Siddharth Vora, who believes that earnings growth and improving liquidity conditions are aligning favourably despite ongoing global challenges.
Vora noted that while global headwinds may persist, domestic-focused sectors with strong balance sheets and high operating leverage are better positioned to deliver positive earnings surprises in the coming year.
Key themes to watch in 2026
- IT sector revival:
IT stocks are expected to benefit from stabilising global demand, gradual recovery in tech spending, and improved deal pipelines, especially in cost-optimisation and AI-led services. - Chemical stocks in focus:
The chemical sector could see a rebound driven by inventory normalisation, revival in export demand, and capacity expansions by strong players with pricing power. - Earnings-led rally:
Markets are likely to be supported by earnings growth rather than valuation expansion, making stock selection crucial.
Vora added that companies with clean balance sheets, strong cash flows, and operating leverage could outperform the broader market, even if volatility remains elevated globally.
If you want, I can also:
- make this into a short market bite for social media
- add top IT and chemical stock themes
- rewrite it in a more bullish or cautious tone
