Stock market: JP Morgan pegs Nifty50 at 30,000 by 2026 — what is fueling the bullish stance?
In its latest India Equity Strategy note, the firm said that India’s macroeconomic backdrop remains supportive, with fiscal and monetary policies “aligned to drive growth, sentiment, and earnings.” The report adds that India’s strong fundamentals and resilient domestic capital flows continue to justify its premium valuations, which the firm believes are sustainable.JP Morgan expects MSCI India earnings to grow 13% in 2026 and 14% in 2027, strengthening its case for steady market re-rating, ET reported.It also noted that while Indian equities still trade at a premium to emerging-market peers, the valuation gap has narrowed below the long-term average, boosting relative attractiveness.The Indian equity benchmark indices, Nifty50 and BSE Sensex rallied in trade on Thursday with both indices hitting lifetime highs.
While Nifty50 went above 26,300, BSE Sensex crossed the 86,000 mark for the first time.
Market analysts indicate positive conditions persist, supported by improved Q3 demand patterns and anticipated capex growth, alongside potential rate reductions from RBI and the US Federal Reserve, which could enable the market to achieve new heights.“The technical construct of the market with high FII short position also is favourable for rally.
Importantly, the rally has fundamental support from potential earnings growth expected in Q3 and Q4 of FY 26.
The consumption boom witnessed in October will translate into impressive earnings growth,” Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited said.“If the trend sustains, even with slight moderation after the festival season, earnings growth, going forward, will be good warranting a rally in the market.
But there is no room for a sharp sustaining uptrend since valuations do not support that.
Fundamentally Bank Nifty has the strength to support a rally to a new record high,” he said.“Expectation of a rate cut by the Fed and a possible Russia-Ukraine peace accord have improved sentiments for equity markets globally,” he added.The firm further flagged a potential US–India trade resolution as an additional catalyst, saying any breakthrough could accelerate an equity re-rating.
It also said the downgrade cycle now appears to be over, adding to the market’s structural tailwinds, ET reported.Overall, the note reflects strong confidence in India’s market trajectory, driven by solid domestic fundamentals, robust earnings momentum, and a supportive policy environment.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own.
These opinions do not represent the views of The Times of India)
