India, Dec. 20 -- Indian equity markets are expected to enter a new phase of growth in 2026, driven by improved earnings, supportive macro conditions, and resilient domestic investor participation. This is despite global growth remaining under pressure, according to Kotak Securities' Market Outlook 2026. Despite heightened volatility during the calendar year 2025, equities demonstrated resilience. "Despite the drawdown of 17 per cent, the Nifty 50 index erased all the losses by the end of CY25 to touch a new all-time high," the report stated.

"Later in the year, the benchmarks hit fresh highs at points, supported by strong domestic flows and improving cyclical momentum, yet the advance was uneven across sectors and market-cap bands. Larg...