‘Base is reset’: Mihir Vora sees cleaner setup for markets in 2026

Mihir Vora, Chief Investment Officer at Trust Mutual Fund, which manages assets worth ₹3,793.72 crore as of September 2025, believes market expectations have been reset as investors head into 2026 after a weak 2025.

Vora described 2025 as a year of underperformance, especially after factoring in currency movement, but said it marked a phase of mean reversion following years of strong Indian equity returns. He noted that markets held up despite events such as the Sindoor episode and pending US tariff issues. “The good thing now as we enter 2026 is that the base of expectations has been reset,” he said.

According to Vora, domestic flows remain steady, while low expectations could help markets if foreign institutional investors return. He said key triggers for foreign flows include currency stability and a trade agreement between India and the United States. “It’s only a question of time. India and US can’t afford not to have a deal,” he said, adding that such a move could help India regain share from China in emerging market allocations.

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On sector preferences, Vora said his focus is evenly split between capital expenditure and financials. Within financials, he sees potential in private sector banks after a period of underperformance. “With credit growth touching 12 to 13%, private sector banks can do well,” he said. He also remains positive on capital markets and defence, which he believes could recover after recent price corrections.

In consumption, Vora differentiated between traditional staples and newer models. He said staples offer limited growth, while business-to-consumer (B2C) and direct-to-consumer (D2C) companies provide longer-term opportunities, including Indian technology firms expanding overseas. He also expects travel, tourism, hotels, and airlines to be positioned better after a phase of consolidation.

On precious metals, Vora said the recent rise in gold and silver prices could lead to consolidation later in the year, but his long-term view remains positive due to central bank buying and scope for higher retail participation. “Absolutely not a short for sure,” he said on gold.

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As a contrarian idea, he pointed to possible value emerging in sectors that have lagged, such as FMCG and generic pharmaceuticals.

For asset allocation in 2026, Vora suggested more than 50% in equities, 20–25% in Indian debt, and the rest in gold and silver. He said Indian debt looks supportive due to a more accommodative central bank stance and stable inflation.

For the full interview, watch the accompanying video

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