“Bounce Back” Theme Gains Ground in 2026

• HDFC securities
• Thu

Earnings Normalisation and Liquidity Support Drive Outlook

Mumbai, April 8: Market participants are increasingly positioning for a recovery phase in 2026, with the “bounce back” theme gaining traction across segments.

 

Broader Markets Likely to Remain in Focus

According to HDFC Securities Big Review report which was released here on Wednesday, Midcap and smallcap segments are expected to remain key areas of interest, supported by earnings growth projections of 20 per cent and 29 per cent respectively for the coming year, compared to 14 per cent for large caps.

 

At the same time, valuation discipline is becoming more prominent as markets transition from liquidity-driven expansion to earnings-led performance.

 

Transition Towards Earnings-Led Market

The evolving environment suggests a more balanced phase, where earnings visibility, demographic shifts and sustained retail participation collectively support market resilience while shaping the next leg of growth, the report added.