BofA Securities has lifted its year‑end Nifty target to 26,200, a 15‑16% jump from the index’s present level.
The brokerage now forecasts 10‑15% earnings growth for FY 2026‑27, following an 18% rise in the September quarter and a 12% gain in the preceding cycle.
Valuations have eased to 17‑17.5× earnings, roughly one standard deviation below the historical mean, giving the index a more attractive risk‑return profile.
Foreign portfolio outflows are largely reallocating to AI‑driven U.S. stocks; Indian fundamentals—capital spending, tax receipts and credit growth—remain robust.
BofA projects an additional 100 basis points of RBI rate hikes over the next six to nine months, citing lingering crude‑oil‑driven inflation.
With a healthy primary‑market calendar, including a surge in IPOs and block deals, investor sentiment toward Indian equities remains resilient.