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Indian stock markets fell sharply on January 8, 2026, with Sensex down 730 points and Nifty below 26,000 amid US tariff fears. Analysts suggest support, resistance and strategy ahead for markets

In the worst-scenario, though, Emkay Global warns that Nifty may hit 25,000 in Q1-2026. Rupee weakness, and US tariff uncertainy remain key risks

January is likely to remain a phase of consolidation, with investors balancing earnings visibility, global cues, and budget-related expectations, analysts said

Morgan Stanley, under its bull case, has set a BSE Sensex target of 107,000, implying an upside potential of 25 per cent through December 2026

Analyze how the US capture of President Maduro impacts India's energy security, RIL, ONGC, and the stock market. Get expert views from PL Capital & Choice Equity

Mutual funds pumped a record ₹4.9 trillion into equities in 2025, driven by strong SIP inflows and retail participation despite volatile markets

Motilal Oswal said the Nifty is trading at a 12-month forward P/E of 21.2x, near its long-period average of 20.8x, suggesting valuations are reasonable.

Rise in debt, commodity ETF inflows offset lower lumpsum inflows into equity schemes

Gold and silver delivered outsized gains in 2025, while Sensex and Nifty rose for a 10th year, held up by retail inflows even as FPIs sold and earnings lagged

Will Indian markets outperform global markets in 2026? Analysts weigh earnings recovery, valuations, AI risks to forecast Indian equities outlook for the new year

The Nifty SmallCap index has declined 7 per cent so far this year (CY25), the most since the 14-per cent fall in CY-2022, as against a 10 per cent rise in the benchmark Nifty50 index in 2025

Industry adds 5.8 million investors this year compared to 10.6 million in 2024

Market outlook 2026: Looking ahead, Akshat Garg, head of research & product at Choice Wealth, believes calendar year 2026 is likely to be a stock-picker's market

Analysts think financials, metals, and IT sectors are trading at 'relatively' better values and may offer suitable entry points at current levels

Most small-cap stocks, according to analysts, were richly valued in CY25 after their sharp run in the last two calendar year

Flexicap funds and precious-metal ETFs dominated new investor accounts in 2025, as retail money sought diversification, lower-risk equity exposure and performance-linked returns

Flexicap funds top equity MF inflows in 2025, emerging as investors' preferred choice amid volatile markets and becoming the largest equity category by assets

Domestic fund raising is growing faster amid increased local interest

The share of gold in household savings has risen sharply by 855 bps over the past 12 months to 45.6 per cent, primarily on the back of M2M gains