Nifty Seen at 27,958 in 12 Months; PL Capital Flags Upside to 30,497 in Bull Case

Early Recovery Signals Emerge in Indian Markets​

New Delhi, February 25: Early signs of recovery are beginning to surface in Indian equity markets, with the Nifty projected to reach 27,958 over the next 12 months under a base case scenario, according to a report released on Wednesday by PL Capital.

The brokerage outlined a range of outcomes for the benchmark index. In a bullish scenario, a 20x forward earnings multiple implies potential upside toward 30,497. On the other hand, a more conservative bear case places the Nifty target at 26,486.

Earnings Growth and Corporate Performance Remain Resilient​

PL Capital expects earnings per share growth at 3.8 per cent in the near term. However, the medium term earnings trajectory remains robust, with an estimated compound annual growth rate of 16.3 per cent over FY26 to FY28.

Corporate performance continues to hold steady. The report noted that sales, EBITDA, and profit after tax have grown 9.9 per cent, 16.4 per cent, and 16.7 per cent year on year, respectively.

The prolonged phase of market consolidation, the firm said, appears to be giving way to renewed optimism. Structural growth drivers remain intact despite recent earnings recalibrations.

Structural Growth Narrative Gains Momentum​

“India's growth narrative is entering a decisive phase as policy clarity, landmark trade agreements, and a sustained infrastructure push converge to lay the foundation for the next leg of expansion,” the report stated.

Amnish Aggarwal, Director Research, Institutional Equities at PL Capital, said India is transitioning from a cyclical recovery phase to a structurally stronger growth trajectory.

He added that as capital formation accelerates and productivity enhancements take hold, Indian equities could be entering the early stages of a multi year compounding cycle.

Trade Diplomacy and Sectoral Tailwinds in Focus​

A key catalyst identified for the next growth cycle is India’s accelerated progress on trade diplomacy, including the India EU Free Trade Agreement.

Labour intensive sectors such as textiles and apparel, marine products, leather and footwear, gems and jewellery, chemicals, machinery, and electrical equipment are expected to benefit significantly.

The firm highlighted that marine exports, leather goods, and gems, which are critical employment generators, could see a meaningful boost in demand.

On the sectoral front, banks and diversified financials are positioned to gain from credit growth normalisation toward 13 to 14 per cent and stable asset quality trends. Capital goods and engineering companies are also likely to benefit from continued momentum in infrastructure and defense spending.

With structural drivers strengthening and earnings momentum expected to build, the report suggests that Indian equities may be positioning for the next phase of expansion.