- Market experts see a positive outlook for Indian equity investors in 2026
- The US-India trade deal has removed uncertainty, boosting investor confidence
- Foreign investment is expected to return following government tax and policy fixes
Market experts project a positive scenario for Indian equity investors with an emphasis on the revival in foreign investments.
India is on the cusp of a change following the historic trade deal with the United States and it could be the most appropriate time to invest in Indian equities, according to market experts. Speaking at the NDTV Profit Conclave 2026, market experts highlighted how the US-India trade deal has eliminated "uncertainty", opening up new opportunities for investors.
A panel, comprising Devina Mehra, Founder Chairperson and Managing Director of First Global, N Jayakumar, MD & Group CEO of Prime Securities, Dharmesh Mehta, MD and CEO of DAM Capital Advisors and Gurmeet Chadha, CIO and Managing Partner of Complete Circle, outlined India's long-term growth prospects, while expressing confidence on return of foreign investments to Indian equities.
"I am very positive that the FIIs will come back to India. It's just how India treats them, how India wants them. Unfortunately, we have not treated them well with the taxes changing and the changes on the holding structure... That's a technique issue, which I think the government has noted. I believe some action will happen very soon," said Dharmesh Mehta.
He also expressed confidence in India's long-term growth prospects.
"For me, this is India's 'golden decade'. Let's not worry about one or two quarters... A long-term story is intact... I believe India is on the cusp of a change," he added.
First Global's Devina Mehra projected a positive scenario for investors, hoping that 2026 will be a better year compared to 2025.
"Even before the trade deal, or for that matter, the Budget, 2026 may well be, at least in probability terms, better than 2025. The simple reason is that for the first time on television, I saw people from my industry enumerating the risks in the market. Normally, everybody is selling only the 'India growth story'."
"Certainly, I would say that things don't look quite so bad. My recommendation has been, A) Never have 100% in equity. B) Whatever your equity allocations, certainly not the time to sit it out. You should be invested, maybe not in the same old stocks that you have," she suggested.
N Jayakumar also echoed the same sentiment, highlighting that uncertainty has ended for Indian markets after a volatile phase.
"I think the uncertainty is out of the way largely. There are still elements which need to be negotiated... We shouldn't look at markets in a one-year time frame necessarily. But we have been the worst-performing market. The currency of investment has weakened for most foreigners... If you happen to be an unfortunate European investor, you have been down close to 25%. Given all that, there is a reversion to the mean," said Jayakumar.
"I think the first sign of the flow back of money is beginning. This is a trend that doesn't stop in one week or a few days. It's (trade deal) coming at the worst end of desperation, the worst end of people feeling sick and tired with markets," he added, commenting on the India-US trade deal.
According to Gurmeet Chadha of Complete Circle, India has seen net positive inflows in the last few days just ahead of the announcement of the India-US trade deal, indicating a revival in foreign investments.
"Net inflows in emerging markets have been over $20 billion. We lost $4 billion, but in the last three to four days, there have been net positive inflows. The AI trade is slightly softened; commodities have slightly cooled," Chadha observed.
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