New Delhi, Jan. 4 -- The broader macro environment for Indian equities appears stable as one looks ahead to 2026, according to a report by ICICI Prudential Alternate Investments. Corporate balance sheets are healthier, and early signs of an earnings recovery are becoming more visible across sectors, it has asserted in the 'Outlook 2026: Beyond Narratives' report.

"However, after an extended market cycle and a rerating across many parts of the market, much of this macro and earnings optimism is already reflected in valuations. In this context, broad-based, index-led returns are likely to be more measured going ahead," the report read.

As Indian equities transition into a more mature phase of the market cycle, the opportunity set remains ...