New Delhi: According to a research issued by PL Capital, Indian equity markets may see a substantial upward trend in the next months, with the Nifty 50 index predicted to reach a new all-time high of 28,957 by December 2025 if a bull run returns.
The Nifty 50 index had previously reached an all-time high of 26,277.35 in September 2024. The paper has provided three scenarios that would change its previous Nifty 50 goals based on market circumstances.
In the base case, the Nifty is valued at a 2.5% discount to its 15-year average price-to-earnings (PE) ratio of 18.5x, with a projected March 2027 earnings per share (EPS) of Rs 1,451.5. As a result, the 12-month target is revised upward to 26,889 from the previous estimate of 25,521.
In the bullish scenario, the index is valued at a PE of 20x, yielding a goal of 28,957, up from the previous estimate of 27,590.
In the bear scenario, Nifty may trade at a 10% discount to its long-term average, with a lower target of 24,821, somewhat less than the 24,831 previously projected.
According to the study, we value the NIFTY at a PE of 20x, resulting in a bullish target of 28957 (27590 previously).
It did, however, highlight the significance of increased consumer demand in the future. This is backed by a regular monsoon, a multiyear low in food inflation, interest rate and CRR reductions, and tax advantages provided by the FY26 Union Budget.
The report also stated that the first quarter of FY26 has seen a mixed trend, with demand remaining constant but no substantial increase. The impending holiday season and the regional distribution of monsoon rainfall are forecast to contribute significantly to broad-based demand.
The government's capital expenditure (Capex) frontloading was also emphasized, with increases of 61% in April and 39% in May. There has been considerable progress in order placement, as well as a substantial increase in military spending.
In addition, the Reserve Bank of India (RBI) decreased the repo rate by 100 basis points (bps) and intends to reduce the cash reserve ratio (CRR) by a further 100 bps over time.
These measures are intended to boost liquidity in the financial system and encourage credit growth, which was 9.5 percent in the first quarter of fiscal year 2026.
If the circumstances remain beneficial, the research indicated that the Nifty index will continue its march toward new highs.
