New Delhi, Feb 25 Early signs of revival are emerging in Indian markets, with the Nifty projected to reach 27,958 over the next 12 months under a base case scenario, a report said on Wednesday.
The report from PL Capital said that a bullish scenario of a 20x forward earnings multiple implies upside toward 30,497, while a conservative bear case suggests 26,486 target for Nifty.
The firm said that EPS growth is expected at 3.8 per cent, and medium‑term earnings trajectory remains strong with an estimated 16.3 per cent CAGR over FY26–28. Corporate performance has remained resilient, with sales, EBITDA and profit after tax growing 9.9 per cent, 16.4 per cent and 16.7 per cent year‑on‑year respectively, the report further said.
"India’s growth narrative is entering a decisive phase as policy clarity, landmark trade agreements and a sustained infrastructure push converge to lay the foundation for the next leg of expansion," the report said.
The prolonged phase of market consolidation appears to be giving way to renewed optimism, with structural drivers firmly in place despite recent earnings recalibrations, it added.
“India is transitioning from a cyclical recovery phase to a structurally stronger growth trajectory,” said Amnish Aggarwal, Director Research, Institutional Equities, PL Capital.
As capital formation accelerates and productivity enhancements play out, we believe Indian equities are entering the early stages of a multi-year compounding cycle, Aggarwal added.
A defining catalyst for the next growth cycle has been India’s accelerated progress on trade diplomacy, it said highlighting the India–EU Free Trade Agreement.
Labour-intensive sectors such as textiles and apparel, marine products, leather and footwear, gems and jewellery, chemicals, machinery and electrical equipment stand to benefit significantly.
Marine exports, leather goods and gems -- critical employment generators -- are expected to see a meaningful demand boost, the firm predicted.
Sectorally, banks and diversified financials are positioned to benefit from credit growth normalisation toward 13–14 per cent and stable asset quality. Capital goods and engineering companies are likely to ride the infrastructure and defense wave, the firm noted.
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