Be Cautious On IPOs And Renewable Space Heading Into 2026, Says Vikas Khemani

Despite being heavily bullish on Indian markets heading into 2026, Vikas Khemani believes investors should exercise caution when investing in IPOs and the renewable space.

Speaking to NDTV Profit, the Carnelian Asset Management and Advisors CIO and Co-Founder explained that the quality of IPOs have gone down significantly in recent years, while regulation changes don't quite inspire hope for renewables.

"Quality of the IPOs, quality of the fresh issuances have gone down and we are seeing a little bit of froth getting built," Khemani said, before adding that good quality companies will eventually become available at a lower premium down the line.

"We have seen this in earlier years as well. Many of these companies, even if they are good, may be available at lower valuations two years down the line," he said.

Vikas Khemani is also cautious about the renewable space, as he believes a lot of policy changes are happening.

"I think one more sector one should be careful about is the entire renewable space, because a lot of policy changes are happening," he said.

"We’re also hearing about some oversupply, and almost every week there seem to be new companies coming up in that segment. Whenever such a setup develops, one has to be careful," he added.

While Khemani is cautious on both IPOs and the renewable space, he is bullish on banks and BFSI.

"In every year or every cycle there have been different sectors which take the lead. In the last 6-8 months, we've been a believers that because of the facts which I mentioned—fiscal and monetary stimulus—banks and the BFSI entire basket will be the leaders of this rally," he said.

Overall, Khemani believes that 2026 will be the year for Indian markets, especially with corporate earnings expected to return in a big way.