As investors step into the new year, many are searching for sectors and themes that could offer opportunities ahead. With markets being shaped by shifting interest rates, government policies and global trends, DSP Mutual Fund, in its latest equity report Beyond the Efficient Frontier, has outlined several broad investment themes to watch in 2026.
The fund house believes select pockets of the market could stand out over the year, identifying banks and NBFCs, IT services, consumer-focused businesses, PSUs, power, healthcare and agri-inputs as key themes that investors may want to track closely in 2026.
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According to DSP Mutual Fund, banks and non-banking financial companies (NBFCs) could emerge as key beneficiaries of interest rate cuts, steady credit growth and largely stable asset quality.
The IT services sector, which underperformed the broader market in 2025, is another theme the fund house is tracking closely. With valuations no longer demanding, any revival in global technology spending–whether driven by artificial intelligence or otherwise–could unlock upside for select IT companies.
DSP Mutual Fund adds that consumer-focused businesses may benefit from policy support and lower interest rates, which could aid a recovery in demand. However, it cautions that shifting wallet shares and intense competition across categories warrant a selective approach.
The fund house also sees merit in the PSU space, particularly select PSU banks that could benefit from the same tailwinds supporting the broader banking sector. In addition, energy-related PSUs may gain from a favourable crude oil environment.
The power sector is another area of interest, with DSP Mutual Fund highlighting potential gains from stepped-up investments in renewable energy. After a slowdown last year due to extended monsoons, the sector could see an improvement in the investment cycle, supporting growth prospects.
Healthcare remains a long-term structural theme, with the fund house pointing to hospitals, pharmaceutical companies and contract development and manufacturing organisations (CDMOs) as potential beneficiaries. Rising insurance penetration, better access to healthcare services and increasing health awareness are expected to support the sector.
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After a weak first half of FY26, agri-input companies may see a recovery, supported by valuation corrections and a better Rabi outlook.
While these themes provide a broad framework for investors to track in 2026, DSP Mutual Fund emphasises that disciplined, bottom-up stock selection will remain the key driver of investment outcomes.
The fund house believes select pockets of the market could stand out over the year, identifying banks and NBFCs, IT services, consumer-focused businesses, PSUs, power, healthcare and agri-inputs as key themes that investors may want to track closely in 2026.
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According to DSP Mutual Fund, banks and non-banking financial companies (NBFCs) could emerge as key beneficiaries of interest rate cuts, steady credit growth and largely stable asset quality.
The IT services sector, which underperformed the broader market in 2025, is another theme the fund house is tracking closely. With valuations no longer demanding, any revival in global technology spending–whether driven by artificial intelligence or otherwise–could unlock upside for select IT companies.
DSP Mutual Fund adds that consumer-focused businesses may benefit from policy support and lower interest rates, which could aid a recovery in demand. However, it cautions that shifting wallet shares and intense competition across categories warrant a selective approach.
The fund house also sees merit in the PSU space, particularly select PSU banks that could benefit from the same tailwinds supporting the broader banking sector. In addition, energy-related PSUs may gain from a favourable crude oil environment.
The power sector is another area of interest, with DSP Mutual Fund highlighting potential gains from stepped-up investments in renewable energy. After a slowdown last year due to extended monsoons, the sector could see an improvement in the investment cycle, supporting growth prospects.
Healthcare remains a long-term structural theme, with the fund house pointing to hospitals, pharmaceutical companies and contract development and manufacturing organisations (CDMOs) as potential beneficiaries. Rising insurance penetration, better access to healthcare services and increasing health awareness are expected to support the sector.
Also Read | ICICI Prudential AMC shares surge 7% after Q3 PAT jumps 45% YoY
After a weak first half of FY26, agri-input companies may see a recovery, supported by valuation corrections and a better Rabi outlook.
While these themes provide a broad framework for investors to track in 2026, DSP Mutual Fund emphasises that disciplined, bottom-up stock selection will remain the key driver of investment outcomes.
