Asset X | November 2026: Key Signals Across Asset Classes

Markets are navigating a mixed landscape this November, with resilient domestic fundamentals offering support even as global volatility, elevated bond yields and geopolitical tensions keep investors cautious. In India, strong earnings and easing FPI selling favour large caps, while higher crude prices, inflationary pressures and currency volatility remain key risks to watch.

In this edition, AssetX brings together the signals shaping equities, fixed income, commodities, alternates and currencies, helping you look beyond the market noise and stay ahead of what matters for your investment strategy.

Equities

Domestic Equities: Earnings and high-frequency indicators continue to be strong, although growth may taper slightly. Valuations remain reasonable and below long-term averages. We remain constructive on domestic equities and continue to favour one-shot deployment. However, we have revised our Large Cap-to-SMIDs allocation to 70:30 from 60:40, trimming SMID exposure, as large caps have delivered strong September-quarter earnings and FPI selling has eased, with early signs of a return to net buying. Within sectors, we remain bullish on Financial Services and, more selectively, Nifty Metals. However, RBI rate hikes, elevated crude and high wholesale inflation pose as downside risks for equities.

Global Equities have been volatile in the recent period as the Fed’s decision to hike rates, elevated bond yields, sustained geopolitical tensions and questions over the ROI of the AI-driven capex cycle have weighed on investor sentiment. October 2026 also saw emerging markets underperform developed markets, despite resilient underlying economic and corporate fundamentals. Uncertainty surrounding the US midterm elections added to market volatility. However, with the Democrats securing majority in both chambers, a key source of uncertainty has now been removed, allowing markets to refocus on underlying fundamentals and macroeconomic developments. We had earlier recommended adding portfolio stabilisers to help navigate potential volatility and continue to favour this approach. For fresh allocations, we recommend a well-diversified mix of developed markets, including the US, alongside select emerging markets outside India.

Fixed Income & Commodities

Domestic debt markets: Bond yields remain elevated, tracking the rise in US Treasury yields alongside increased expectations of further rate hikes in both the US and India. FPI flows remain volatile adding further pressure on yields. With the RBI potentially delivering another rate hike in the December policy meeting, we favour keeping portfolio modified duration between 3Y-5Y.

In Commodities, we remain constructive on gold, supported by strong structural fundamentals, however, near-term headwinds remain. Oneshot allocation into gold ETFs can be considered.

Alternates

Rapid advances in AI, space and defence technologies continue to drive investor interest across Unlisted Equities, including deep-tech PE and VC. However, recent IPOs listing below pre-IPO valuations have tempered appetite for late-stage private deals. The preference is shifting towards companies still two to three years from listing, where entry valuations and risk-return trade-off may be more reasonable.

Commercial Real Estate sees a steady growth path with Bangalore, Hyderabad, Mumbai & Pune markets leading the charge.

Currency

INR remains vulnerable amid middle-east tensions, volatile FPI flows and widening trade deficit. Although continued support from the RBI could help curtail excess volatility. We expect the INR to remain within 92–98/USD range.

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AssetX brings you facts and data that cut through market noise. We highlight the most important signals across major asset classes in the global financial markets, so your investment strategy always stays on point.