PL Capital, in its India Strategy Report titled “Ready for Next Leg of Growth,” forecasts the Nifty to hit 27,609 within the next 12 months. The brokerage attributes this optimistic outlook to several key drivers: falling inflation, a normal monsoon boosting rural demand, fiscal stimulus including a ₹1,000 billion tax cut in FY26, and a potential 100 bps rate cut from the RBI, which is expected to reduce EMIs and spur consumption across housing, autos, and loans. Additionally, GST 2.0 reforms are likely to lower prices on items like vehicles, consumer goods, essentials, and medicines—further enhancing demand.
Despite challenges like US tariffs and ₹410 billion in FII outflows, Indian markets have remained steady since July, with corporate earnings mostly in line with expectations. While PL Capital has slightly reduced its Nifty EPS estimates for FY26 and FY27, it still expects a 13.2% CAGR in EPS from FY25 to FY27. Applying a PE of 19.1x to FY27 EPS of ₹1,445 results in the revised Nifty target. The firm remains overweight on sectors like Banking, Consumer, Auto, and Telecom, while staying underweight on IT and Commodities.
