Axis Securities expects Nifty 50 to reach 26,800 by March 2026 in a favourable economic scenario. This outlook depends on stable policies, political stability, and a soft landing in the US economy. Their base target is 25,500, while the bear case is 21,600. They predict earnings growth around 17-18% for FY23-27, supporting market gains despite short-term ups and downs.
The firm advises investors to buy high-quality stocks like HDFC Bank, SBI, Bharti Airtel, Bajaj Finance, and Lupin gradually over 12-18 months. Key growth drivers include fiscal prudence, rural recovery, and higher private investment spending. The export sectors face risks because of US tariffs and global uncertainties, which investors should watch closely.
Indian markets also benefit from RBI’s supportive policies, including rate cuts and liquidity boosts. Though the short term may show volatility, medium- and long-term prospects look good due to solid domestic growth.
Axis Securities expects earnings upgrades in the latter half of FY26. This will come from better consumption and stronger financial services earnings. Investors should focus on domestic sectors poised to outperform.
Overall, Axis Securities sees strong potential for the Indian market with some risks. Selective, phased investing in quality companies is the recommended approach.