Despite ongoing geopolitical uncertainties and elevated crude oil prices, India’s market benchmark Nifty is expected to touch 29,000 level by March 2027, a report said
The report from Emkay Global Financial Limited said that India’s domestic macroeconomic resilience, improving earnings trajectory and policy support continue to offer a strong foundation for long-term growth
“Earnings resilience, policy support, easing domestic inflationary pressures and ongoing capex investments continue to provide a strong foundation for Indian equities. We believe any near-term market weakness should be viewed as an opportunity for long-term portfolio positioning,” said Seshadri Sen, Head of Research & Strategist Emkay Global Financial Services.
As external risks moderate, India remains well placed to deliver strong earnings growth and sustained economic expansion over the medium term, Sen added.
The report noted that near-term volatility may persist due to the prolonged Middle-East conflict and continued pressure on global energy markets.
The Q4FY26 earnings season has begun on a relatively steady note, the report said retaining its FY27 Nifty EPS estimate at Rs 1,230, with earnings growth expectations holding at nearly 13 per cent.
The report noted that Indian equities have recently lost some valuation support, with the Nifty currently trading at around 19.2x FY27 forward earnings, close to its five-year long-term average valuation.
Any sharp correction driven by global concerns should be viewed as a tactical buying opportunity rather than a structural risk to India’s long-term growth outlook, the brokerage said.
The firm remained overweight on sectors such as discretionary consumption, materials, industrials and real estate, while maintaining an underweight stance on financials, energy, healthcare, staples, telecom and technology in the near term.
The ongoing geopolitical crisis in the Middle East, particularly the prolonged closure of the Strait of Hormuz remains a key concern and prolonged elevated oil prices could materially impact India’s macroeconomic stability given the country’s dependence on energy imports.
