Kotak Securities Forecast: Nifty to Surge by 12% by 2026

Kotak Securities anticipates a 12% rise in Nifty by 2026, driven by strong earnings growth from India Inc. The forecast includes a Nifty target of 29,120 points by end-2025, supported by robust macro factors, positive policies, and rising domestic flows, despite global geopolitical challenges.

Domestic brokerage firm Kotak Securities announced on Wednesday its forecast of a 12% rise in the Nifty index by 2026, primarily fueled by improved earnings growth from Indian companies. The firm's Managing Director and CEO, Shripal Shah, stated that the Nifty is expected to reach 29,120 points by 2025 as earnings accelerate by 17% in the next year.

'This anticipated increase reaffirms the strength of market fundamentals and prevents potential bubble formations,' Shah explained. Despite existing global geopolitical and trade challenges, the long-term potential of India's market remains robust due to a solid macroeconomic environment, beneficial policy actions, and rising domestic investment flows.

Additionally, the brokerage projects strong performance in banking, financial services, information technology, healthcare, and hospitality sectors, while bullish sentiment surrounds bullion, with gold and silver prices predicted to soar significantly by the end of the coming year. Moreover, the Indian rupee is expected to appreciate against the dollar, closing at Rs 87-88 by 2026.

(With inputs from agencies.)