New Delhi, Jan. 1 -- Indian equities are entering a far more selective phase in 2026, leaving behind the pandemic-era rally that lifted stocks almost indiscriminately. A liquidity- and retail-fuelled boom has given way to a market where returns hinge squarely on earnings durability rather than momentum. Investors should expect fewer easy winners, wider return dispersion, and stock selection to matter far more than market direction, according to experts.

Between 2020 and 2023, nearly 97% of BSE 500 constituents delivered positive returns, with three-fourths rising more than 80%, according to a Mint analysis of 400 of the BSE 500 stocks. The broad-based rally created a rare environment where momentum often outweighed fundamentals.

The mar...