Nifty 50 target
Prabhudas Lilladher Equities raises 12-month Nifty 50 target to 26889 points
This story was originally published at 17:52 IST on 16 July 2025
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NEW DELHI – Prabhudas Lilladher Institutional Equities has raised its 12-month target for the Nifty 50 to 26889 points, up from 25521 earlier, citing positive growth drivers such as recovery in domestic demand, supportive monetary policy, and targeted fiscal initiatives. This implies a gain of over 6% from current levels.
"Although a broad-based recovery is yet to take hold, factors such as tax relief, normal monsoons, easing inflation, and lower interest rates are creating conditions for a consumption-driven rebound," Amnish Aggarwal, director-research of institutional research at the brokerage house, said in a press release.
According to its latest 'India Strategy' report, Prabhudas Lilladher expects improved liquidity in the system and credit growth, supported by the recent repo rate cuts by the Reserve Bank of India's Monetary Policy Committee. On benefits from tax relief announced in the Union Budget, the brokerage estimates tax savings could translate into INR 3.3 trillion in additional consumption over 2025-26 (Apr-Mar), particularly benefiting discretionary segments such as travel, home upgrades, and lifestyle products. It expects the full consumption impact of the tax cuts to materialise from August onwards.
According to the brokerage, the June quarter has shown a mixed trend with stable demand and no major acceleration. The upcoming festival season and spatial distribution of monsoon will be key determinants for broad-based demand revival. It is of the view that domestic-oriented sectors will lead the next leg of market performance. It is overweight on sectors such as healthcare, banks, consumer, telecom, and capital goods while remaining underweight on information technology services, cement, metals, and oil and gas.
"Indian markets have shown a lot of resilience in the past few months despite big events and disruptions around global tariff wars, Israel Iran war, and Operation Sindoor...Markets seem to have learnt to live with global volatility and adverse geopolitical news flows given flip flops in US policies around tariffs and big variations in crude and global politics," the brokerage said. End
Reported by Shakshi Jain
Edited by Subhojit Sarkar
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