Bernstein downgrades India's 2026 equity outlook to 'Neutral'
Bernstein, a global investment firm, just shifted its view on Indian stocks for 2026 from "Selective Buy" to "Neutral."
They say the market's high prices and fewer big economic boosts are making things less exciting than before.
The government's spending and the China+1 trend helped earlier, but those drivers might not be as strong next year.
What this means for investors:
Bernstein expects only small interest rate cuts and a slight pickup in private investment, so growth could be pretty modest.
They're predicting a 7.5% return for the Nifty 50 index in 2026.
Right now, Indian stocks are trading at much higher price-to-earnings ratios than other major economies—something that has them cautious.
Bernstein is still upbeat on financials, telecom, and real estate, but less so on consumer staples and industrials.
Plus, changes in US trade policies could shake up India's IT sector.