Antique Stock Broking believes India's main stock index, the Nifty 50, could rise to around 29,500 by March 2027 as corporate earnings start to recover.
Why the Nifty could rise
The firm expects a 13% upside from today's level, based on a valuation of 20 times earnings expected for FY28. It projects earnings to grow about 16% annually between FY26 and FY28, much faster than the 7% growth seen in recent years.
Key stock picks
Antique’s top large‑cap ideas are:
- ICICI Bank
- State Bank of India (SBI)
- Hindustan Aeronautics
- Adani Power
- HDFC Life Insurance
- HDFC Asset Management
- Solar Industries
- HPCL
- BHEL
- Mazagon Dock Shipbuilders
In the mid‑cap space it likes Siemens Energy India, Hitachi Energy, Coromandel International, Nippon Life India Asset Management and Radico Khaitan. Small‑cap favourites include Chalet Hotels, Sobha, Syrma SGS Technology and Transformers & Rectifiers India.
Sector themes
- Capital expenditure (capex): After two years of slowdown, capex is expected to pick up as fiscal and trade conditions improve. Companies in defence, electronics manufacturing services, capital goods and select real estate are seen as attractive.
- Financials: Banks are expected to enter an earnings upswing in CY26, helped by a strong domestic economy and the tail‑end of the RBI’s rate‑cut cycle. Public‑sector banks appear undervalued, trading at about a 45% discount to peers.
- Selective consumption: Most consumer stocks are underweight, but niches like alcoholic beverages, jewellery, hotels and certain auto segments may do well.
- Mid‑ and small‑caps: Valuations are still high, but growth‑adjusted prices look reasonable. These stocks could outgrow the Nifty over the next 2‑3 years thanks to higher exposure to domestic cycles and capex.
Investor flows and risks
Foreign portfolio investors withdrew about $17.5 billion from Indian equities in CY25. Antique expects this outflow to stabilize and possibly reverse in CY26, given low foreign ownership levels and relatively attractive valuations.
The main risk is that global investors may continue to favor AI‑linked markets, which could keep some money away from Indian stocks.
Bottom line
Antique’s outlook hinges on an earnings‑driven rally rather than higher market multiples. If corporate profits and foreign inflows pick up as expected, the Nifty could see a steady climb toward the 29,500 mark, with banks and capex‑related companies leading the charge.
Remember, this is just one analyst’s view, not a guarantee. Do your own research and consider your risk tolerance before making any investment decisions.