Optimism is building in India’s equity markets as recovery signals emerge. A fresh PL Capital report forecasts the Nifty 50 touching 27,958 in the base case over the coming 12 months, with even higher peaks possible in bullish conditions.
Drawing on forward earnings multiples, the bullish scenario eyes 30,497, while bears could drag it down to 26,486. Base case assumes steady market dynamics without extremes.
Earnings outlook is positive, with EPS growth at 3.8% and a stellar 16.3% CAGR projected for 2026-28. Companies continue to deliver: sales up 9.9%, EBITDA 16.4%, and net profits 16.7% year-on-year.
India’s economic narrative is at a pivotal juncture, propelled by clear policies, landmark trade pacts, and infrastructure momentum. This sets the stage for sustained expansion, according to the report.
After prolonged consolidation, markets are poised for a fresh bullish phase. Structural strengths endure despite near-term earnings fluctuations.
‘We’re moving beyond cyclical upturns into enduring structural growth,’ said Amanish Agarwal, PL Capital’s Institutional Equity Research Director. With capital investment accelerating and productivity rising, Indian stocks are entering a prolonged compounding era.
The report spotlights the India-EU FTA as a game-changer, boosting trade diplomacy and fueling growth. Key beneficiaries include labor-heavy industries such as garments, marine products, footwear, jewelry, and engineering goods.
Export demand for employment-generating sectors like seafood, leather, and gems is set to rise sharply. Infrastructure and defense tailwinds will further empower capex and engineering players.