New Delhi: A report released on Tuesday forecasts that the Nifty index will reach 28,781 within the next 12 months, highlighting the impressive resilience of India’s economy and stock markets amid global challenges such as U.S. tariffs, H-1B visa fee increases, and geopolitical instability. PL Capital anticipates a 12.1% EPS compound annual growth rate for Nifty from FY25 to FY27, noting that sectors focused on the domestic market, including banking, automotive, and metals, will drive this growth. The brokerage mentioned that favorable conditions for a significant uptick in consumption are present, supported by normal monsoon seasons, a 100-basis-point reduction in interest rates, adjustments to GST rates, and tax cuts introduced in the FY26 Budget.
It also highlighted that sectors such as cement, metals, oil, and gas are expected to lead earnings in FY26. India’s Q1 FY26 GDP growth, reported at 7.8% year-on-year, exceeded expectations, outpacing the 6.5% in Q1 FY25 and 7.4% in Q4FY25. Various high-frequency indicators, including GST collections, e-way bills, services exports, and credit growth, suggest robust underlying domestic demand. This resurgence in demand is likely to boost private sector capacity utilization and private capital expenditure, which have been on hold, according to PL Capital. The brokerage noted that India’s services exports are entering a new growth phase, driven by high-value knowledge services delivered digitally.
By 2030, it is projected that India will host around 2,200 Global Capability Centres (GCCs) generating over $100 billion in revenue, with total services exports anticipated to hit $500 billion. The talent landscape is evolving quickly, with increasing demand in fields such as AI, cybersecurity, GenAI product engineering, and sustainability analytics, further enhancing India’s role as a global innovation hub.
