NewKerala.com

Nifty's Bullish Forecast: Why 29,094 is Within Reach Amid Strong Earnings

A new report sets a bullish one-year target for the Nifty index, pointing to strong fundamentals. India's macroeconomic backdrop is seen as exceptionally strong, with low inflation and supportive policies. Corporate earnings are expected to show durable growth across several key sectors. This optimism is further supported by significant domestic investor inflows and upgraded GDP projections.

Key Points: Nifty Target 29,094 in 12 Months on Strong Earnings and Macro

  • Nifty target of 29,094 is based on long-term valuation averages and earnings durability
  • India's macro strength features record-low inflation and a dovish monetary policy stance
  • Earnings growth is expected to broaden across consumption, financials, and capex-linked sectors
  • Domestic institutional investors have provided record net inflows anchoring the market
2 min read

Nifty to touch 29,094 in 12 months supported by durable earnings, strong macro backdrop

PL Wealth forecasts Nifty at 29,094, citing durable earnings, a strong macro backdrop with low inflation, and robust domestic liquidity driving growth.

"India’s current macro configuration is among the most constructive we have seen in over a decade. - Inderbir Singh Jolly, CEO, PL Wealth Management"

New Delhi, Dec 19

India's benchmark index Nifty is expected to touch 29, 094 in one year based on long‑term valuation averages and earnings durability, a report said on Friday.

Wealth management firm PL Wealth said in the report that India enters the end of 2025 from a position of relative macro strength with record‑low inflation, a dovish monetary stance, resilient domestic demand and improved corporate earnings visibility.

"In the near term, large-cap stocks remain preferred due to their earnings stability and strong balance sheets, while selective exposure to high-quality mid-cap names is being added as visibility improves," the wealth management firm cited its strategy.

Over the next 6 to 24 months, the earnings cycle is expected to broaden across consumption, financials, capex-linked sectors and select industrials, supported by benign inflation, lower interest rates and sustained domestic liquidity.

“India’s current macro configuration is among the most constructive we have seen in over a decade,” said Inderbir Singh Jolly, CEO, PL Wealth Management.

While global uncertainties will continue to create short-term volatility, India’s structural strengths—policy reform, financialisaton of savings and improving corporate balance sheets—position it well for sustained long-term growth, Inderbir added.

RBI’s 25 basis‑point cut to a 5.25 per cent policy repo rate lowered its CPI inflation projections and upgraded GDP growth estimates, signalling confidence in the sustainability of domestic demand, the report said.

The firm also noted FY26 GDP growth projection of 7.3 per cent underpinned by robust infrastructure spending, resilient consumption and key policy measures such as GST rationalisation and income-tax cuts.

The FY26 September quarter earnings season delivered broad-based strength, with several sectors—including hospitals, capital goods, cement, electronics manufacturing services, ports, NBFCs and telecom—reporting double-digit growth in EBITDA and profits.

The firm noted that Nifty earnings per share estimates for FY26–FY28 imply an earnings CAGR of nearly 14 per cent. Domestic institutional investors have anchored markets with record net inflows of over Rs 6.8 trillion year‑to‑date.

- IANS

Share this article:

Reader Comments

P
Priya S
While the macro picture looks strong, I hope this growth translates to more jobs on the ground, especially for the youth. The focus on capex and infrastructure is good, but we need to ensure MSMEs also benefit from this cycle. Cautiously optimistic.
R
Rohit P
"Most constructive macro in over a decade" – that's a powerful statement. The combination of rate cuts, GST rationalisation, and tax cuts seems to be creating a perfect storm for growth. My portfolio is already heavy on financials and capital goods, feeling good about it!
S
Sarah B
As an NRI investing back home, this report strengthens my conviction. The financialisation of savings is a real game-changer – more Indians are moving from physical assets like gold to financial markets. This creates a durable domestic pool of capital. Well done, RBI and the government.
V
Vikram M
Respectfully, these brokerage reports always paint a rosy picture. 29,094 is a very specific number – markets don't move in straight lines. Global uncertainties (US elections, oil prices) can throw a spanner in the works. Retail investors should focus on asset allocation, not chase targets.
K
Kavya N
The broad-based earnings growth across hospitals, cement, ports etc. is the key takeaway for me. It's not just one sector driving things. This suggests a healthy, diversified economic recovery. Time to look at some of these performing mid-caps with strong balance sheets.

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

Leave a Comment

Minimum 50 characters 0/50