Vinit Bolinjkar of Ventura Securities outlines a cautious yet constructive strategy for Indian equities in 2026. He notes that while benchmark indices have delivered high single-digit returns, broader markets - especially small caps - have underperformed, hurting retail investors with heavy exposure. At current levels around 26,000, valuations are reasonable but not cheap, making stock selection critical. With Indian interest rates likely past their peak and selling pressure emerging in mid and small caps due to IPO supply and profit-taking, Vinit advises investors to be highly selective and valuation-disciplined. For fresh allocations, he prefers large caps with a tilt towards consumption-led businesses. As inflation bottoms out and gradually rises, he expects improvement in revenues and EBITDA, making quality large caps a relatively safer bet for 2026.