‘Expect a gradual shift from derivatives to cash-market investing’

Brokerages’ growth will come from advisory-led offerings such as comprehensive wealth solutions that generate “recurring revenue streams” and “customer stickiness”, says Krishna Kumar Karwa, managing director of Emkay Global Financial Services.

- 

The slowdown in markets is now over, he tells Puneet Wadhwa in a telephonic interview. Edited excerpts:

Will Indian equities be tepid in 2026 as well?

Over the past 12 months, the Nifty 50 has underperformed most major emerging market (EM) indices. However, this needs a more balanced perspective. Over a two-year horizon, several key markets, including Mexico, Brazil, Indonesia and the Philippines, have delivered returns broadly similar to or lower than India (in local currency terms).

A closer look shows that the significant outperformance has primarily come from technology-heavy markets such as the US, Taiwan and Korea, highlighting India’s current gap in technology depth and R&D capabilities. Additionally, Indian equities were substantially more expensive than most EM peers during 2024, and India’s geopolitical positioning also influenced capital flows and market sentiment.