The first half of 2026 saw a notable shift in leadership across asset classes. Within Indian equities, the performance gap widened sharply. Large-cap stocks declined 7.4 per cent year-to-date (YTD), weighed down by valuation correction and persistent foreign portfolio outflows. In contrast, mid- and small-cap stocks delivered positive returns of 2.4 per cent and 6.3 per cent respectively.

For Indian investors with international exposure, overseas equities emerged as the better performers. The US market gained 13.5 per cent, while China delivered 9.5 per cent return in INR terms.

Among commodities, gold gained 5.4 per cent, while silver declined 4.7 per cent in INR terms. This decline in silver overshadows its peak YTD return during H1 of 66 per cent highlighting its extreme volatile nature.

Fixed-income investments continued to provide stability. Short-term debt delivered 5.6 per cent, outperforming long-term debt, which returned 4.8 per cent. With the interest-rate trajectory remaining uncertain, accrual-oriented short-duration strategies offered a better risk-reward trade-off than duration-heavy portfolios.

However, overall when the investment horizon is extended, gold and silver have delivered the best returns, topping the table across periods ranging from one to seven years. On a 10-year basis, the S&P 500 takes the top spot, while India’s Midcap 150 ranks second.

Published on June 27, 2026