More Stories

Informist, Thursday, Dec. 11, 2025

 

Please click here to read all liners published on this story

--Emkay Global: Nifty 50 target for 2026 at 29000, valuations to be elevated 
--CONTEXT: Emkay Global details market outlook for 2026 
--Emkay Global: Stress on rupee to weigh on stock market in short term 
--Emkay Global: Expect India-US trade deal to be concluded in 3-6 months 
--Emkay Global: Capex cycle to normalise in 2026, pvt capex to remain muted 
--Emkay Global: High valuations to limit market upside, upgrades key 
--Emkay Global: Constructive on IPO boom, see it as sign of maturing market 
--Emkay Global:See strong domestic fund flow in equity on low interest rates 
--Emkay Global: See revival in foreign funds inflow with India-US trade deal 

MUMBAI - Emkay Global Financial Services expects the Nifty 50 to hit 29000 points in 2026, supported by a recovery in consumption in the second half of the current financial year, monetary policy easing and liquidity infusion by the Reserve Bank of India, recovery in capital expenditure cycle, and expectations of a trade deal between India and the US. The brokerage is overweight on sectors such as consumer discretionary, healthcare, and industrial and it is underweight on financial companies, information technology, and telecommunications sectors.

 

The brokerage remains constructive on the domestic market in the medium term, but cautions about continued volatility in the near term because of rupee depreciation against the dollar. It expects a low double-digit return from the Nifty 50 in 2026, similar to that in 2025. "We entered CY25 (calendar year 2025) with the market correcting and we are exiting CY25 in the last month on a slightly higher note," Seshadri Sen, head of research and strategist at Emkay Global, said in a press conference detailing the brokerage's India strategy outlook for 2026.  

 

Emkay Global sees the cut in goods and services tax rates by the government as a growth-accretive reform that provides a structural boost to affordability and hence demand in automobile, cement, and consumer durables segments. Within automobiles, it expects a strong recovery in the entry level vehicles with their prices coming down and sees this growth continuing in 2026. Further, it expects consumer durables companies especially the air-conditioner segment to see better growth in 2026 on a recovery from 2025 which was "a bit of tough year" because of the unexpected weather conditions. Further, Emkay Global expects the repo rate cut and liquidity infusion by the RBI to reduce borrowing costs and aid credit transmission, particularly for retail-focused lenders and non-banking financial companies. 

 

On the capital expenditure front, the brokerage expects growth cycle to normalise after its run up during FY21-FY24. It sees capital expenditure growth moderating to 11-13% going ahead with government spending expected to continue in railways, defence, and power sectors providing support. It also expects moderate pick up in capital expenditure of the private sector.  

 

The brokerage house expects the Indian stock market's valuations to remain elevated in 2026. The Nifty 50 is currently moving at one standard deviation higher than its long-period average. High valuations, though supported by economic growth and improved quality of earnings, are expected to limit the domestic market's upside in the next year, it said. Large-cap stocks are overvalued and mid- and small-cap stocks are near their five-year average, the broking firm said. Although large-caps provide wealth protection in volatile markets, small- and mid-caps provide alpha, it said.

 

So far in 2025, foreign portfolio investors remained net sellers, offloading shares worth INR 2.71 billion, while domestic inflows were strong, Emkay Global said. "...if a trade deal gets done (between India and the US) in the early part of the first quarter (Jan-Mar), you will see a rush of FII money," it said. Speaking about domestic investors, Emkay Global said inflows will remain very strong. "In a low interest rate environment, especially with differentiated taxation, the Indian saver will continue to improve their exposure to equities."

 

Meanwhile, the primary market remains active, with total issuances reaching INR 1.77 trillion so far this year. The brokerage house is constructive on the boom in initial public offerings, which is a "very healthy sign for the market", particularly after a year-long muted performance of domestic equities.  End

 

Reported by Arya S. Biju, Arundathi A R, and Anjana Therese Antony

Edited by Ashish Shirke

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.