The Nifty 50 can surge toward 32,000 by fiscal 2029 as corporate profit growth snaps back from a two-year consolidation.
Sanjay Parekh, Founder and Chief Investment Officer at Sohum Asset Managers, laid out the roadmap on the back of rising corporate earnings. The arithmetic hinges on index earnings climbing to ₹1,400 in FY28—pegging fair value at 28,000 on a 20-times multiple—before expanding to ₹1,600 in FY29 as nominal economic growth flows directly into corporate income statements. Index constituents generated 17% profit growth in the first quarter, while the 35 to 36 firms reporting second-quarter figures so far clocked an aggregate 22% jump.
Previous headwinds have turned. Falling crude oil prices, cooling bond yields, and softening retail inflation are rebuilding operating margins across corporate balance sheets. Instead of chasing fast market spikes, Parekh urges investors to accumulate large-cap equities on pullbacks.
Banking heavyweights form the backbone of Sohum's fund deployment. The asset manager holds a 32% aggregate exposure across five lenders: ICICI Bank, Axis Bank, State Bank of India, HDFC Bank, and Kotak Mahindra Bank. Stable asset books and steady credit demand will anchor returns, with bank earnings slated to expand through FY28 if domestic borrowing costs soften by roughly 50 basis points over the next six months.
Beyond the credit sector, Parekh committed 7% of his portfolio across two automakers—Maruti Suzuki and Mahindra & Mahindra—to capture discretionary retail demand. The fund has also accumulated positions across market infrastructure and lending platforms, including Angel One, the National Stock Exchange, Bajaj Finance, and Northern Arc Capital. The fund purchased NSE shares on their initial trading day and added further volume during intermediate price dips, anticipating the exchange will compound underlying earnings between 13% and 15%.
| Benchmark Horizon | Projected Index EPS | Target PE Multiple | Implied Nifty Level | Core Driver |
|---|---|---|---|---|
| Current Cycle | ₹1,200 | 20x | 24,000 | Base Year Earnings |
| FY28 Projections | ₹1,400 | 20x | 28,000 | 50 bps Rate Cut Easing |
| FY29 Target | ₹1,600 | 20x | 32,000 | Nominal GDP Expansion |
Yet Parekh remains selective on broader markets. The fund sits underweight on both information technology and fast-moving consumer goods, citing stretched valuation multiples and sluggish corporate spending among software exporters. He maintains a neutral exposure on pharmaceutical manufacturers and large diversified conglomerates, preferring instead to channel capital toward capital goods makers, telecom carriers, and logistics operators.