Gold to stay strong as markets turn positive for 2026: Kotak Securities

Indian markets are heading into 2026 with a positive outlook . According to Kotak Securities’ 2026 Market Outlook , both equities and commodities are showing strength even amid global uncertainty. India continues to stand out as a strong growth economy , helping keep investor sentiment steady.

Shripal Shah, MD and CEO of Kotak Securities, said the outlook for equities is supported by improving company earnings and policy stability . He also expects gold to remain a safe haven in 2026, especially as more young investors enter the markets and build long term portfolios.

Gold was one of the biggest winners of 2025. Global prices jumped over 55 per cent , crossing USD 4000 per ounce , due to geopolitical tensions and strong central bank buying. In India, gold prices rose nearly 60 per cent because of rupee depreciation .

The report highlights a major gap in household participation. As per a SEBI survey , 63 per cent of households are aware of market products, but only 9.5 per cent actually invest. Kotak Securities says this shows large untapped potential and the need for greater financial inclusion .

In equities, the Nifty 50 made a strong comeback after a 17 per cent fall from its 2024 highs and ended 2025 at a new all time high . Large caps led the gains while mid and small caps lagged. Automobiles , banking , and metals performed well, while IT and FMCG stayed weak. Domestic investors helped offset foreign outflows, and a strong IPO market reflected continued confidence.

Kotak Securities expects company profits to grow steadily, with Nifty earnings projected to rise 17.6 per cent in 2026–27 and 14.8 per cent in 2027–28 . The top sectors to watch include BFSI , technology , healthcare , and hospitality .

In commodities, silver doubled in value in 2025 due to safe haven buying and supply shortages. Crude oil fell 19 per cent because global supply remained high. Base metals like copper and aluminium stayed firm, supported by electrification demand, though some volatility is expected.

Overall, Kotak Securities expects 2026 to be a steady and optimistic year for investors, backed by strong fundamentals and rising participation in financial markets.