New Delhi, Dec 10, 2025

Though Indian equities underperformed in 2025, a stronger performance is awaiting them in 2026, driven by supportive government policies and rate cuts, a report said on Wednesday.

A double‑digit return is likely next year if policy measures revive consumption along with a favourable regulatory regime, the report from HSBC Global Investment Research said.

“Equities underperformed in 2025, but thanks to government support we expect next year to be better, especially compared to regional peers,” the report said.

The underperformance was due to companies’ missing earnings estimates and India’s relative weak positioning in the AI value chain.

“While challenges remain, we believe some of this underperformance will unwind in 2026. Significant initiatives by the govern

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