PL Capital has projected the Nifty to reach 27,609 in the next 12 months, citing expectations of a strong revival in domestic demand driven by multiple economic tailwinds. The financial services firm released its latest India Strategy Report titled “Ready for next leg of growth” today.
The Mumbai-based organization attributes the optimistic outlook to benign inflation at 1.6 per cent with food deflation, normal monsoons boosting rural incomes, and a fiscal boost from ₹1,000 billion tax cuts planned for FY26. The momentum is expected to strengthen further in the second half of 2026 with the transmission of RBI’s 100 basis points rate cuts.
PL Capital highlighted the upcoming GST 2.0 reforms as a key catalyst, which will rationalize the current four tax slabs to primarily two — 5 per cent and 18 per cent. The restructuring aims to reduce prices across automobiles, durables, staples, and medicines, potentially triggering broad-based consumption.
Despite facing US tariff challenges and foreign institutional investor outflows of ₹410 billion, Indian markets have shown resilience with largely flat trends since early July. Corporate earnings have remained reasonable, with sales, EBITDA, and PAT deviating by just 2 per cent, 0.9 per cent, and -0.5 per cent respectively from expectations.
The firm maintains overweight positions in Banks, Healthcare, Consumer, Telecom, Auto, and Capital Goods while remaining underweight on IT Services and Commodities. Nifty EPS estimates project a healthy 13.2 per cent CAGR over FY25-27.
Published on August 26, 2025
