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Will Momentum Beat Quality in 2026? | India Stock Market Recovers

Wright ResearchMay 3, 2026

The Indian equity market has bottomed, and the debate is whether momentum or quality investing will outperform. Historically, momentum has delivered higher absolute returns over full cycles despite higher volatility, and the current market environment lacks the systemic leverage issues seen in 2008, making momentum a more favorable bet. The quality index is currently overweight in struggling sectors like IT and FMCG, while the momentum index is positioned in cyclical sectors poised for growth.

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ITNeutralMedium ConvictionSignal-backedSecondary

IT sector may see an AI-driven revenue inflection, but its performance is uncertain.

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