Domestic brokerage firm Kotak Securities on Wednesday said it expects a 12 per cent jump in Nifty in 2026 on the back of better earnings growth from India Inc.
In the base case, NSE’s 50-share benchmark will reach 29,120 points by end-2025, its Managing Director and Chief Executive Shripal Shah told reporters here. This will be driven more by an acceleration in earnings growth to 17 per cent next year, Shah said, adding that this increase will be a strong affirmation of fundamentals influencing capital markets and ensures that no bubble gets built up.“We expect stronger earnings growth next year, supported by a solid macro environment, positive policy actions, and rising domestic flows. Even with global geopolitical and trade tensions, India's long-term market story remains strong and intact,” Shah said.
He said the level of optimism is very high, and the brokerage expects even foreign portfolio investors to turn positive on India after a challenging 2025.In a bull case, the Nifty estimate is pegged at 32,032 points while in a bear case, it can go down to 26,208 points, the brokerage said.
Shah said the rally in stocks, which is being seen right now is not broad-based, and it is only the Nifty stocks that are witnessing buying while the scrips in the mid and small cap space are far away from their highs.A senior official from the brokerage said it expects interest in large caps to be high till the Budget, and added that the small and midcap space will rise March onwards.
