Markets 2026: Avendus Wealth CIO Saurabh Rungta's Clear Portfolio Guide

As 2025 ends on a challenging note, Saurabh Rungta, Chief Investment Officer at Avendus Wealth Management, shares a constructive view for Indian markets in 2026. He credits RBI's calibrated policy for supporting credit growth and financial stability, with inflation trends aiding domestic demand. Corporate earnings are poised for mid-teens growth in FY27, driven by consumption, financials, manufacturing, and capex cycles.​

Rungta prefers large-caps for better risk-reward, spotlighting domestic cyclicals like financials (barring private banks), alongside tactical bets in IT services and pharma/healthcare. For a 3-5 year horizon, he recommends a growth-oriented India equity portfolio split 50% large-caps and 50% selective mid/small-caps, emphasizing earnings visibility over momentum.​

Key Highlights:

Nifty Target: 28,500–30,000 by end-2026, tracking earnings.​

Opportunities: Reform Budget, US-India trade deal, Fed rate cuts boosting EMs.​

Risks: High mid/small-cap valuations; FII return needs strong triggers.​

Portfolio (High-Risk, 3-5Y): 40% equities, 5% fixed income, 20% alt debt/equity, 15% commodities.​

Global Adds: US (AI), Asia ex-China manufacturing, global pharma; modest China reversion.​

Sources: Business Standard interview, Avendus Wealth insights.