India’s benchmark Nifty 50 is projected to potentially reach the 28,000–31,000 range by the end of March 2027, indicating a 15% to 25% increase from current levels. A report by investment management firm OmniScience Capital has forecasted FY27 Nifty 50 earnings per share to be between Rs 1,280 and Rs 1,320, with an expected earnings growth of 10%–13%.
The report anticipates a possible re-rating due to factors such as easing geopolitical tensions, declining crude prices, a strengthening INR, and a favorable inflation outlook. These conditions may allow the RBI to maintain interest rates and facilitate renewed FII inflows, according to the firm. Over the last 25 years, the index has shown an average annual growth of approximately 14.26% including dividends.
Vikas V Gupta, CEO & Chief Investment Strategist at OmniScience Capital, mentioned that the market is undervalued, and even with moderate earnings growth, long-term investors could see rewarding returns if they can handle volatility. The report highlighted sectoral opportunities, particularly in banks, which are well-positioned with gross non-performing assets below 2.5%, capital adequacy around 17%, and provision coverage near 76.6%.
These factors enable banks to support incremental credit of about Rs 94 lakh crore without requiring fresh equity, with a sustained government and corporate capex cycle expected to drive multiyear credit growth and earnings visibility. The power sector is poised to benefit from a capex opportunity of Rs 65–70, supported by robust policy backing, with rising electricity demand and new-age consumption like EVs and data centers providing long-term visibility.
Ashwini Shami, President & Chief Portfolio Manager at OmniScience Capital, expressed optimism on banks, financial services, and the power sector due to strong earnings growth, healthy balance sheets, and significant capital allocation for capacity expansion. Despite recent corrections, IT stocks are noted to have fair-to-elevated valuations compared to growth visibility, with ongoing uncertainties surrounding AI disruption and global tech spending warranting caution, as per the report.
