Indian equity markets are offering an attractive entry point for long-term investors, according to Sonal Minhas, who believes return expectations for 2026 remain healthy despite near-term volatility. Speaking in a market interaction, Minhas said investors can expect mid-teen returns as earnings momentum improves and valuations turn more reasonable after recent consolidation.
Why Indian equities look attractive now
Minhas highlighted that Indian markets have gone through a phase of time and price correction, which has helped cool off excessive optimism. With earnings growth expected to normalise and domestic economic drivers remaining intact, the risk-reward equation is turning favourable for patient investors.
She noted that India continues to benefit from strong domestic demand, structural reforms, and resilient consumption trends, which should support earnings growth over the medium term.
Banks and NBFCs remain key beneficiaries
According to Minhas, high-quality banks and NBFCs are well-positioned to lead the next leg of market returns. Institutions with exposure to MSME lending, personal loans, and corporate credit are likely to see steady growth as credit demand improves across segments.
She added that balance sheets across the financial sector are stronger than in previous cycles, with better asset quality and capital adequacy, allowing lenders to capture growth opportunities without taking excessive risk.
Outlook for 2026
Looking ahead, Minhas remains constructive on Indian equities, citing improving earnings visibility and stable macro conditions. While market volatility may persist in the short term, she believes disciplined investors focusing on quality businesses stand to benefit over the next year.
Keywords: Daily Voice, Indian equity outlook 2026, Sonal Minhas market view, Indian stock market outlook, banks NBFC stocks, mid-teen returns India, investment outlook India
