Three Big Factors That May Lift Markets In 2026

Sandip Bansal of ASK Investment Managers outlines three key factors shaping the equity market outlook for 2026. The foremost trigger is a pickup in earnings growth, with FY26 expected to see improvement in the second half, setting the stage for a stronger 14–15% earnings growth trajectory in FY27. Improved market sentiment, supported by potential progress on a U.S. trade deal and expanding bilateral agreements, could further aid the outlook. Bansal also highlights a recovery across market breadth, driven by rising government activity, improved project execution, and a revival in the private sector capex cycle. With rate cuts already in place and capital raised awaiting deployment, growth impulses could strengthen meaningfully next year.