Rajesh Kothari, Managing Director of AlfAccurate Advisors, projected that the NIFTY 50 will grow at a 12% CAGR over the next three to five years, citing improved earnings breadth and resilient fundamentals.
Non‑food credit expanded by 17‑18% YoY, while industrial credit surged to 20%—its highest level since 2011— and personal loan books grew 16%, signalling a hard‑core credit push underpinning the economy.
Foreign institutional investors are still buying Indian equities overall; net flows have stayed negative, but gross purchases over the past year have been steady, indicating company‑specific rather than country‑wide pessimism.
Kothari highlighted EMS, aerospace, contract development and auto ancillaries as key growth engines, while banking and financial services remain attractive due to controlled credit costs and improving asset quality. Specialty chemicals and consumer discretionary segments also offer upside, especially with Europe as a strategic export corridor.
The market is trading below its 10‑year average price‑to‑earnings ratio, suggesting valuations are reasonable and there is room for upside as earnings expand.
Looking ahead, AlfAccurate is evaluating participation in upcoming IPOs, including Jio’s, and anticipates ARPU growth of 4‑5% annually as the mobile services sector scales, reinforcing the case for a broad, all‑in equity stance.