The Indian stock market is expected to have a blockbuster year in 2026, with many brokerages predicting that the Sensex will breach the 90,000 level by the end of the year. This optimism is driven by a number of factors, including a potential reversal of the foreign selloff, earnings acceleration, and a favorable policy environment.
A poll of 13 leading brokerages reveals that 10 of them expect the Sensex to soar past 90,000, while the remaining three expect it to hover between 85,000-90,000. Not a single brokerage turned bearish, with 11 expressing outright bullish views and two staying neutral.
The optimism comes as the Sensex is poised to extend its remarkable winning streak to a 10th consecutive year of positive returns. The index has already climbed 8% in 2025, despite fierce headwinds from foreign institutional investor (FII) outflows totaling around $18 billion.
The FIIs are expected to return as buyers in 2026, with 11 of 13 brokerages expecting a comeback. The potential reversal of the foreign selloff is driven by factors such as a possible India-US trade deal, fiscal and monetary stimuli provided by the government and the RBI, and a consumption boom.
Brokerages are eyeing consumption, banking, financials, real estate, infrastructure, and healthcare as key beneficiaries. Banking and financials continue to be top priority, with strong fundamentals and fair valuations.
Other sectors, such as hospitality and healthcare, are also expected to perform well, although valuation comfort is a concern. The poll also reveals shifting preferences across asset classes, with 10 brokerages picking equities as the top performer for 2026, while three analysts favored silver.
Global heavyweights, such as Morgan Stanley and HSBC, have set audacious Sensex targets of 95,000 and 94,000 respectively, implying double-digit upside from current levels. Morgan Stanley even outlined a bull case scenario with a 30% probability that could catapult the Sensex to a staggering 107,000.
HSBC struck an equally bullish tone, declaring that the worst of the earnings downgrades seems to be behind us and recent results have boosted confidence in the growth outlook. The British banking giant highlighted a critical shift in market positioning, with India being a funding market for AI in Asia, which means investors sold Indian equities to buy Korean or Taiwanese stocks.
However, some brokerages have struck a cautionary note on market breadth, with BofA's Shah saying that Nifty would also outperform the small and big caps, which is a trend that we saw in calendar year 2025 as well.
Remember, this is perspective, not prediction. Do your own research and consider your own financial goals and risk tolerance before making any investment decisions.
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