India’s market benchmark Nifty is anticipated to hit the 29,000 mark by March 2027, as per a report by Emkay Global Financial Limited. The report highlights India’s domestic macroeconomic strength, improving earnings trajectory, and policy backing as key factors supporting long-term growth. Emkay Global Financial Services’ Head of Research & Strategist, Seshadri Sen, emphasized the resilience of earnings, policy support, and ongoing investments as pillars for Indian equities.
As external risks ease, India is positioned to achieve robust earnings growth and sustained economic expansion in the medium term, Sen noted. Despite potential near-term volatility stemming from geopolitical tensions and global energy market pressures, the report maintains a positive outlook. The ongoing Q4FY26 earnings season has commenced steadily, with the report retaining its FY27 Nifty EPS estimate at Rs 1,230, expecting earnings growth of nearly 13 percent.
The report points out that Indian equities have recently experienced a decline in valuation support, with the Nifty trading at approximately 19.2x FY27 forward earnings, close to its long-term average valuation over five years. The brokerage advises viewing any significant market correction driven by global issues as a tactical buying opportunity rather than a fundamental risk to India’s long-term growth prospects. Emkay Global Financial Limited remains bullish on sectors like discretionary consumption, materials, industrials, and real estate, while maintaining a cautious stance on financials, energy, healthcare, staples, telecom, and technology in the short term.
The prolonged geopolitical crisis in the Middle East, particularly the extended closure of the Strait of Hormuz, poses a significant concern. Prolonged high oil prices could have a substantial impact on India’s macroeconomic stability due to its reliance on energy imports.
