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Nifty 50 Could Surge 25% to 31,000 by 2027, Says OmniScience Report

A new report from OmniScience Capital forecasts the Nifty 50 index could reach between 28,000 and 31,000 by March 2027, implying a significant upside from current levels. This outlook is based on projected earnings growth and a potential market re-rating fueled by easing geopolitical risks and supportive macroeconomic factors. The firm is particularly bullish on the banking and power sectors due to strong fundamentals and major capital expenditure cycles. However, it advises caution regarding IT stocks due to elevated valuations and global uncertainty.

Key Points: Nifty 50 Forecast: 28,000-31,000 Range by March 2027

  • 15-25% Nifty upside to 28,000-31,000 by 2027
  • Earnings growth of 10-13% projected
  • Banks well-positioned with strong balance sheets
  • Power sector a key beneficiary of capex
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Nifty could rise 15-25 pc by March 2027: Report

OmniScience Capital projects a 15-25% rise for Nifty 50 by 2027, driven by earnings growth, stable rates, and opportunities in banks & power.

"Market is significantly undervalued... returns are likely to be quite rewarding for long-term investors. - Vikas V Gupta"

New Delhi, April 22

India's benchmark Nifty 50 could be in the 28,000-31,000 range by the end of March 2027, implying a 15 per cent to 25 per cent upside from current levels, a report said on Wednesday.

The report from investment management firm OmniScience Capital underpinned the outlook on FY27 Nifty 50 earnings per share of Rs 1,280 to Rs 1,320 and projected an earnings growth of 10 per cent-13 per cent.

It forecasted a potential re-rating driven by easing geopolitical tensions, moderating crude prices, a strengthening INR, and a softer inflation outlook. These factors could enable the RBI to hold interest rates steady and also support renewed FII inflows, the firm said.

Over the past 25 years the index has delivered roughly 14.26 per cent compound annual growth including dividends.

"Market is significantly undervalued and even at moderate earnings growth rate returns are likely to be quite rewarding for the long-term investors who can tolerate volatility," said Vikas V Gupta, CEO & Chief Investment Strategist, OmniScience Capital.

The report highlighted sectoral opportunities, mainly banks as well positioned, with gross non‑performing assets below 2.5 per cent, capital adequacy around 17 per cent and provision coverage near 76.6 per cent.

This positions them to fund incremental credit of roughly Rs 94 lakh crore without fresh equity. A sustained government and corporate capex cycle should drive multiyear credit growth and earnings visibility.

The power sector is expected to benefit from Rs 65-70 capex opportunity, backed by strong policy support, it said.

Rising electricity demand-potentially tripling-along with new-age consumption (EVs, data centers) adds durable visibility, the report added.

"We are overweight on banks, financial services, and the power sector, driven by strong earnings growth, healthy balance sheets, and significant capital allocation toward capacity expansion," said Ashwini Shami, President & Chief Portfolio Manager, OmniScience Capital.

Despite recent corrections, IT stocks remain at fair-to-elevated valuations relative to growth visibility. Ongoing uncertainty around AI disruption and global tech spending warrants caution, the report warned.

- IANS

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Reader Comments

S
Sarah B
While the long-term outlook seems positive, I'd advise caution. Projections to 2027 are based on many assumptions - geopolitical easing, crude prices, FII flows. Market sentiment can change quickly. Stay diversified.
A
Aditya G
Finally some sense! The market has been so volatile lately. If banks are truly that strong with low NPAs, it's a solid bet. The power sector capex number is huge - Rs 65-70k crore! Big opportunity.
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Priya S
As a small investor, these reports are helpful but sometimes feel too optimistic. The warning on IT stocks is important though. Many of us have heavy exposure there. Maybe time to rebalance? 🤔
K
Karthik V
The 14.26% historical CAGR including dividends is the key takeaway for me. Even if we get close to that, systematic investing will build serious wealth. Patience is the mantra. 💪
M
Michael C
Interesting perspective from an Indian firm. The linkage between power demand tripling and new-age consumption (EVs, data centers) is a powerful long-term theme. Global investors should take note.

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