The Nifty 50 could touch 26,800 by March 2026 in a Goldilocks scenario of an overall reduction in volatility and a soft landing in the US market, according to brokerage firm Axis Securities.
Axis believes Nifty’s earnings may grow at 17-18 per cent over FY23-27 amid the expectations of political stability, policy continuity, fiscal prudence, an improving private capital expenditure cycle, rural revival, and a soft landing in the US market.
All this would augur well for capital inflows into emerging markets (EMs) and increase the domestic market multiples, Axis said.
The brokerage firm remains confident in India’s long-term growth story, due to the country’s favourable economic structure, rising capital expenditure, and increased consumption from the recent Union Budget and GST 2.0 reforms, driving credit growth for banks.
However, in its base case, Axis Securities’ March 2026 Nifty target is 25,500, even as it sees upside risk to this target due to the expectations of the earnings upgrade starting from Q3FY26.
In the bear case, Axis sees Nifty 50 at 21,600 by the end of the current financial year.
Stocks to buy
Axis has suggested 15 stocks to buy, out of which seven are large-caps, three are mid-caps, and the remaining five are small-cap stocks.
Bajaj Finance, SBI, HDFC Bank, Bharti Airtel, Shriram Finance, Avenue Supermarts (DMart), and Max Healthcare Institute are the seven large-cap stocks to buy suggested by Axis Securities.
Hero MotoCorp, Prestige Estates Projects, and APL Apollo Tubes are the three mid-cap stocks to buy, while Mahanagar Gas, Inox Wind, Kirloskar Brothers, Sansera Engineering, and Kalpataru Projects International are the five small-cap stocks that Axis suggests buying.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
