According to a new report released on Tuesday from New Delhi — cited by LatestNewsX — India’s Nifty index is expected to climb to 29,300 by 2026, a roughly 12 % rise from today’s level, thanks to easing global geopolitical tensions, robust domestic macro‑economic data and a cyclical earnings recovery.
Nomura pointed out that after nearly fourteen months of lagging behind world markets, Indian equity valuations have finally settled into more reasonable territory, giving long‑term investors a healthier entry point and setting the stage for a broader market revival.
The upbeat tone came along with a record‑breaking week on Dalal Street, where the Nifty 50 and the Sensex both broke new all‑time highs at 26,300 and 86,100 respectively, and the Bank Nifty broke the 60,000 threshold for the first time.
Nomura also noted that strong domestic inflows continue to act as a stabilising force. Equity allocations are projected to stay steady at about 13 % of total financial savings in FY25, with primary market issuances absorbing roughly 78 % of that liquidity without denting overall sentiment.
While the firm does not expect a dramatic surge in foreign institutional participation, it sees room for modest gains if the global AI‑driven rally eases and risk premiums remain manageable.
On earnings, the brokerage forecasts a rebound to low double‑digit growth in FY26, helped by a favourable base and a recovery in commodity‑linked sectors such as chemicals, oil and gas, cement and metals.
However, it cautions that consensus estimates for FY27 and FY28 could be trimmed slightly if the capital‑expenditure cycle stalls or if India’s trade deficit stays persistently large.
Other voices, such as those from PL Capital, echo the sentiment that Indian financial markets are headed into 2026 with renewed confidence, riding on a decisive rebound in October and a macroeconomic backdrop that remains resilient amid global uncertainties.
After a three‑month lull, benchmark equity indices surged, with the Nifty 50 and Sensex gaining 4.5 % and 4.6 % respectively — their strongest performances in several months. The sharp turnaround was driven by several domestic factors: a GST 2.0 rate rationalisation that boosted discretionary consumption, a rise in manufacturing activity reflected in a two‑month high PMI of 58.4, and the return of foreign institutional investors, who shifted from net outflows to net purchases, according to PL Capital.
The signing of the Trade and Economic Partnership Agreement (TEPA) with EFTA nations added further momentum by opening tariff‑free access to key European markets, bolstering India’s long‑term export prospects.
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