NewKerala.com

Nifty 50 to Hit 35,000 in 3 Years on Earnings Boom, Strong Consumption

A report from investment platform smallcase projects the Nifty 50 index could reach 34,000-35,000 levels within the next three years. This growth is expected to be driven by strong earnings per share expansion, robust domestic consumption, and banking credit growth. The analysis notes that mid-cap stocks have led market returns in recent years, showing resilience despite global geopolitical conflicts. Sectors like defence, aerospace, and manufacturing are highlighted as key beneficiaries of current global trends.

Key Points: Nifty 50 Target 35,000 in 3 Years: Earnings & Consumption Report

  • Strong EPS growth projected to FY29
  • Mid-caps outperformed large caps
  • Defence sector a key beneficiary of tensions
  • Manufacturing gains from supply chain shifts
  • Markets show resilience to geopolitical shocks
2 min read

Nifty likely to reach 35,000 in 3 years over earnings growth, robust consumption: Report

Nifty 50 could reach 34,000-35,000 in three years driven by earnings growth, robust consumption, and banking credit expansion, a new report claims.

"Nifty earnings per share may rise to Rs 1,281 in FY27, Rs 1,463 in FY28 and Rs 1,650-1,700 by FY29 - smallcase report"

New Delhi, March 16

India's benchmark index Nifty 50 is likely to touch 34,000-35,000 levels over the next three years due to earnings growth, stronger consumption and banking credit expansion, a report claimed on Monday.

From these factors and continued investment in infrastructure and manufacturing, Nifty earnings per share may rise to Rs 1,281 in FY27, Rs 1,463 in FY28 and Rs 1,650-1,700 by FY29, the report from investment platform smallcase said.

Mid-caps led market returns, outperforming large caps during the past four years when global markets experienced shocks from multiple geopolitical conflicts, the report said.

Indian markets delivered about 12.7 per cent CAGR demonstrated notable resilience, with most geopolitical shocks triggering short-term corrections of around 2-8 per cent, followed by swift recoveries within weeks, during times of conflict in last 4 years.

This performance has been supported by the strength of the domestic economy, improving corporate earnings, and rising retail participation in the stock market, the firm said.

Assuming the index maintains its current valuation multiple of about 20.9x earnings, the trend could translate into approximately 12.8-14 per cent compound annual growth rate (CARG), the report added.

The firm highlighted mid‑caps delivered CAGRs of about 18.4 per cent during this period versus 13.4 per cent for small caps and 9.8 per cent for large caps.

Defence and aerospace companies have emerged as key beneficiaries of heightened geopolitical tensions, supported by rising global defence spending and stronger domestic procurement initiatives, it said.

Oil and gas producers have also historically performed well during geopolitical crises due to supply disruptions and rising crude oil prices. Commodity-linked sectors such as metals and mining have similarly witnessed phases of outperformance during periods of supply constraints and commodity price rallies, it added.

Meanwhile, manufacturing and capital goods companies are gaining prominence as global supply chains undergo structural shifts, the firm suggested.

- IANS

Share this article:

Reader Comments

P
Priya S
While the numbers look good, I hope this growth is inclusive and reaches the common man. Stock market highs are great, but we need to ensure real wage growth and job creation on the ground too. The report seems optimistic, fingers crossed!
R
Rohit P
Defence and manufacturing sectors getting a boost is excellent news for 'Make in India'. This aligns perfectly with the government's push for self-reliance. Time to review my portfolio and maybe increase exposure to these sectors.
S
Sarah B
Interesting analysis. The resilience shown during global shocks is impressive. However, a word of caution for new investors: past performance is not a guarantee. A 20.9x valuation multiple is rich, and any global downturn could impact these projections.
V
Vikram M
Bhai, 35,000 Nifty in 3 years? That's some next-level optimism! But the logic is sound - earnings growth, banking credit, and infra spending. The key will be the monsoon and global oil prices. Let's hope for the best! 💹
K
Kavya N
As someone who started investing during the pandemic, this report validates the 'India story'. The rise in retail participation is real - all my friends are now discussing stocks and mutual funds. It feels like a positive shift in the financial culture.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50