2 weeks ago

Nifty 50 negative returns; time to increase equity bets?

Nifty 50 negative returns; time to increase equity bets?
Nifty 50 has delivered negative returns over the last year; is it the right time to increase your bets on equities? · livemint.com

The Nifty 50 is a scoreboard for India's 50 biggest companies.

Over the last year, that scoreboard went down by a little less than 2%.

The drop happened because some foreign investors sold their shares, world events made people nervous, and company profits stopped growing as fast as before.

But experts say India's economy is not in real trouble — the market is just taking a breather.

People in India kept investing small amounts every month, which helped stop prices from falling too much.

Some experts think the market could climb to about 27,000 points by March 2027 if company profits grow by around 12%.

But there are risks too — problems in other countries could make it fall by as much as 20%.

So experts say it is fine to invest a little more, but only in good companies.

They like businesses that build things, make power, help the army, and manage money.

Key facts

Index
Nifty 50
1-year return
Approximately -2% (to Independence Day 2026)
FPI selling in FY26
Nearly $19.7 billion
Best-case FY27 target
About 27,000 by March 2027
Assumed EPS growth
About 12%
Downside scenario
Approximately 20% drawdown if yen carry trade unwinds
Banking loan growth
High-teens percent
Preferred sectors
Manufacturing, infrastructure, power, defence, financial services, selective consumption

Quotes

Vinit Bolinjkar

Head of research at Ventura Capital

“The key catalyst for markets will be a revival in corporate earnings. Earnings growth is expected to improve as consumption demand stabilises, input cost pressures moderate and operating leverage benefits accrue across sectors. Recent earnings trends indicate gradual improvement, with brokerages highlighting stabilising profits and improving earnings visibility.”
livemint.com
“Financials, power, energy, metals and capital‑market‑linked businesses appear better placed where fundamentals justify valuations.”
livemint.com

Sources

Related news