Kotak Sees Nifty Soaring to 29,120 by 2026

Kotak Securities projects significant growth for Indian stock markets, forecasting a Nifty target of 29,120 by December 2026. This projection represents a potential 13.1% increase from current levels, underpinned by robust earnings growth expectations exceeding 17% for 2027. The brokerage anticipates that favorable macroeconomic conditions and strategic policy decisions will act as key catalysts for this upward trend.

Despite a recent drawdown in equities, Nifty 50 has shown resilience, rebounding to new highs. However, mid-cap and small-cap segments have lagged, leading Kotak Securities to emphasize the primacy of fundamental earnings growth over speculative themes. They note that foreign institutional investors (FIIs) may return to the Indian market once they identify sufficient value, especially if government initiatives bolster the manufacturing sector.

Kotak Securities has identified specific sectors poised for strong performance, with a preference for BFSI, technology, healthcare, and hospitality. Additionally, the firm sees continued strength in gold due to macro uncertainties and interest rate cut expectations, while silver prices are expected to remain fundamentally robust, potentially seeing spikes under specific monetary easing or consumption scenarios.