1 week ago
Nifty 50 May Reach New High by 2026 End
Shrikant Chouhan thinks India's Nifty 50 stock index could reach a new record before the end of 2026.
He says this will happen only if company profits keep improving.
Foreign investors would also need to reduce their selling of Indian shares.
More government spending and stable crude oil prices could help the market.
Mid-sized and smaller companies have recently performed better because their profits grew faster.
The market has faced pressure from regional tensions, expensive oil, foreign money leaving India, and slower city spending.
Chouhan says investors should use a mix of protecting money and seeking growth.
He expects interest rates to stay high for a while and markets to move within a limited range in the near term.
Shrikant Chouhan says the Nifty 50 could set a new record before the end of 2026.
He says sustained earnings growth, slower FPI selling, higher government spending, and stable crude prices are needed.
Mid- and small-cap stocks are outperforming large-caps because of stronger earnings growth and operational flexibility.
The market downturn has also been linked to foreign outflows, currency weakness, large IPOs, and weaker urban consumption.
Chouhan expects near-term markets to remain range-bound and favors power, defence, healthcare, banks, and other sectors.
- Who
- Shrikant Chouhan, head of equity research at Kotak Securities.
- What
- He said the Nifty 50 could reach a new all-time high before the end of 2026 if several economic and market conditions improve.
- Where
- India's domestic equity market.
- When
- The forecast concerns the period before the end of 2026; the interview discusses current and upcoming quarters.
- Why
- The potential recovery depends on sustained earnings momentum, slower foreign portfolio investor selling, increased government spending, and stable crude oil prices.
Conditions Supporting Recovery
Risks Pressuring Markets
Nifty 50 outlook
Conditions Supporting Recovery
A new all-time high before the end of 2026 remains technically and fundamentally possible.
Risks Pressuring Markets
The forecast depends on earnings staying strong, FPI selling slowing, government spending increasing, and crude prices stabilising.
Market performance
Conditions Supporting Recovery
Mid- and small-cap companies may continue to benefit from stronger earnings, cost-cutting, operational agility, and niche-market focus.
Risks Pressuring Markets
Foreign outflows, currency weakness, elevated crude prices, large IPOs absorbing liquidity, and slower urban consumption are weighing on the market.
Interest rates and inflation
Conditions Supporting Recovery
Central banks may hold benchmark rates rather than begin another rate-hike cycle.
Risks Pressuring Markets
Persistent inflation could delay rate cuts and create headwinds for equity investors, while rates remain high for longer.
Key facts
- Current Nifty 50 level
- Around 24,200, according to the article.
- Decline from record
- Nearly 8% below its all-time high of 26,370.
- Q1 top-line growth
- Broader market revenue growth was nearly 6% year over year.
- Q1 profit growth
- PAT growth was flat to modest, at approximately 3%–4% year over year.
- Near-term outlook
- Markets are expected to remain range-bound.
- Preferred sectors
- Power, defence, auto ancillaries, large-cap private banks, healthcare, speciality pharma, and chemicals.
- Interest-rate outlook
- A return to rate hikes is not the baseline expectation, but rates may remain higher for longer and rate cuts could be delayed.
Sources
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