Kotak Securities has projected a constructive medium-term outlook for Indian equities, estimating that the Nifty 50 index could climb b 29,120 by December 2026. The brokerage’s forecast is underpinned by expectations of steady economic growth, improving corporate earnings visibility, and continued structural strength in India’s domestic economy.

Key Highlights

• Kotak Securities projects the Nifty 50 index to reach 29,120 by December 2026.
• Forecast is supported by strong macro fundamentals, earnings growth expectations, and sustained domestic investment momentum.

According to Kotak Securities, India’s macro fundamentals remain supportive, driven by sustained government capital expenditure, a gradual recovery in private investment, and resilient domestic consumption. The brokerage believes these factors, combined with a stable policy environment, are likely to create favorable conditions for equity markets over the next two years.

Kotak also highlights that corporate balance sheets have strengthened significantly over recent years, with lower leverage and improved cash flows positioning companies to benefit from an upturn in demand. This is expected to translate into healthier earnings growth across key sectors, particularly financials, capital goods, infrastructure, manufacturing, and select consumption-oriented businesses.

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While acknowledging near-term volatility from global factors such as geopolitical tensions, interest rate movements, and fluctuations in foreign capital flows, Kotak Securities maintains that India remains relatively well-placed compared to other emerging markets. Strong domestic participation and rising retail investor interest are also seen as supportive for market stability.

The brokerage advises investors to adopt a disciplined, long-term approach, focusing on fundamentally strong companies and sectors aligned with India’s growth cycle. Overall, Kotak Securities’ Nifty projection reflects confidence in India’s economic trajectory and the equity market’s potential to deliver sustained returns through 2026.