India is likely to outperform global equity markets in 2026, provided investors maintain a disciplined approach to asset allocation, according to S Naren, Chief Investment Officer at ICICI Prudential Mutual Fund.
Naren pointed out that several international markets appear overvalued, with particular concern around US technology stocks, where valuations have moved well ahead of underlying fundamentals. He also noted that precious metals are showing signs of excessive optimism, suggesting limited upside after the recent rally.
In contrast, India’s relatively stronger economic growth outlook, improving corporate earnings visibility, and more balanced valuations position domestic markets favourably in a global context. Naren emphasized that returns over the coming years are likely to be driven not just by equity selection, but by prudent diversification across asset classes.
He added that investors who focus on long-term asset allocation rather than short-term market timing may be better placed to navigate global volatility and benefit from India’s structural growth story in 2026 and beyond.
