Equities

While a trade deal will help at the margin, according to Rohit Arora, head of Asia FX & rates strategy at UBS, a key factor limiting any sustained rupee recovery will be the recent drawdown of the Reserve Bank of India's foreign exchange reserves.

The rupee ended 0.3% higher at 89.88, its highest closing level in a week, after closing at 90.1650 in the previous session. It hit an intraday high of 89.86.

With ₹68 lakh already invested and disciplined SIPs, the goal is achievable—but portfolio rebalancing, risk control and asset allocation will be key to avoiding costly mistakes.

A video of Warren Buffett, who recently stepped down from his role as the CEO of Berkshire Hathaway on December 31 after three decades, has resurfaced, wherein he is seen explaining why equities make for a better bet than stocks.

Foreign portfolio investors started 2026 by withdrawing ₹7,608 crore from Indian equities, continuing the selling trend from 2025. Despite this, experts believe improving domestic fundamentals may attract net foreign inflows later in the year as equity valuations stabilize.

Since both equity and commodity markets undergo cycles, analysts are now of the view that equities will make a comeback in 2026.

Stock market direction will now hinge on the quality and breadth of earnings growth, the flow of global liquidity into India, the pace of domestic capital expenditure, and how valuations compare, market participants said.