Nifty To Hit 29,300 In 2026, Says Nomura As It Lists Top 20 Stock Picks - Details Inside

Key Highlights

• In its India Strategy outlook, the brokerage has set an end-2026 Nifty target of 29,300, implying a potential 12% return from current levels. However, Nomura notes that the broader economic and technological backdrop remains unsettled, and that the path to a new macro equilibrium is still unclear. The target is based on 21 times December 2027 forecast earnings, adjusted for a 3% downside to current consensus estimates.
• Nomura expects Indian markets to trade in a band of 20–22 times forward earnings, assuming risk premia remain low. The brokerage highlights that valuation worries have eased since mid-2025, when markets stabilised after the tariff-related volatility.
• Improving geopolitical conditions, stable macro indicators, and a broad-based recovery in economic and corporate earnings have further strengthened confidence. FPI ParticipationDomestic equity inflows have remained resilient, accounting for 13% of gross financial savings in fiscal 2025.
• Primary market activity has also kept pace.
• While foreign investor participation has been lukewarm, Nomura believes that the alignment of India’s valuation premium with long-term averages could support a gradual return of foreign flows in 2026, particularly if the global technology-led rally moderates. Nomura’s outlook is not without risks.