Rohit Srivastava, a market strategist, says India's equity market could see big gains by 2026, while gold may lose steam.
Market Outlook: Nifty and Bank Nifty Targets
Srivastava believes the Nifty 50 could reach 30,000 by the end of 2026 if earnings grow around 15% for the year. If earnings grow even faster or investors accept a higher price‑to‑earnings multiple, the index could climb to about 33,000.
For the banking sector, he expects the Bank Nifty to rise to 72,000. Banks have started to benefit from a healthier credit cycle and the Reserve Bank of India is likely to lower rates, which should support growth.
What's Holding the Market Back?
- Trade deal uncertainty: Ongoing negotiations with the U.S. are still pending, and any setback could spook investors.
- Recent IPO activity: Investors have been selling shares in mid‑cap and small‑cap stocks to fund new IPO subscriptions, creating a temporary drag on broader market indices.
Gold and Silver: Overbought Warning
Both metals look extremely overbought on monthly charts, suggesting a correction may be near. While precious metals outperformed stocks in 2025, Srivastava thinks equities will beat them in 2026.
IT Stocks: Should You Buy?
IT shares have fallen, making them look cheap. However, the sector’s long‑term growth outlook is uncertain. Srivastava expects IT to rise, but likely at a slower pace than the overall market. Picking individual high‑growth IT stocks is essential if you want better returns.
Foreign Investors: Possible Return in 2026
Foreign Institutional Investors (FIIs) have trimmed their selling, but a big shift to buying will depend on the trade deal’s outcome and any favorable tax changes. The valuation gap between India and other emerging markets is narrowing, which could attract more FII money.
Takeaway
Overall, the outlook points to a stronger equity market by 2026, with Nifty potentially hitting 33,000 and Bank Nifty 72,000. Gold and silver may see a pull‑back, and IT stocks need careful selection. Keep an eye on trade negotiations and policy changes, as they could influence foreign investment flows.
Remember, this is an opinion, not a guarantee. Do your own research and consider talking to a certified advisor before making any investment decisions.