Key Highlights
- In its base case, the brokerage revised its Nifty target to 28,100 for December 2026, valuing the index at 20x Dec’27 earnings.
- While the bear-case target of 24,000 assumes persistent inflation in the developed world, currency pressure, and slower earnings recovery due to global trade disruptions.
- The brokerage credited multiple domestic triggers for restoring investor confidence heading into FY26.
- These include the 50 bps CRR cut in December 2024, expectations of 100 bps rate cuts by the RBI, improved liquidity measures, the consumption boost from the Union Budget, and the roll-out of GST 2.0 reforms.
- Together, these indicators suggest “better days ahead in FY26 than FY25,” with stronger prospects for credit growth and consumption revival.