Indian stock market, Dec. 27 -- As we enter into 2026, the Indian equity market is at a pivotal juncture-shifting away from a period led largely by domestic liquidity toward a phase where earnings execution, policy coherence, and macroeconomic stability are set to drive returns.

Market performance in 2025 was mixed, with the Nifty 50 scaling a record high of 26,326 on December 1 and posting annual gains of 10.2%. Meanwhile, Sensex has gained up to 8% in last one year.

India's inflation edged up in November after touching a record low in October, but it remains comfortably below the Reserve Bank of India's 4% target, leaving room for additional repo rate cuts in the coming year.

The RBI reduced interest rates by 25 basis points last wee...