Bank of America Securities sees Nifty at 26,200 December 2026
Bank of America (BofA) Securities now expects the Nifty index to hit 26,200 by December 2026, a solid 12% higher than where it is today.
After playing it safe for a while, BofA feels most risks are already priced in.
Still, they're keeping an eye on possible US Fed rate hikes and a busy season of new stock offerings coming up this October.
BofA forecasts $30B share issuance Sep-Dec
BofA thinks we'll see $30 billion worth of new shares hit the market between September and December, with activity peaking in October.
They also predict the US Fed could raise rates by 75 basis points, more than most expect.
For earnings, BofA sees Nifty companies growing profits by 10% in FY27 and picking up to 15% in FY28 after recent estimate cuts.
With mid-cap stocks already having a strong year, BofA is now leaning toward large-cap stocks instead, especially liking private banks and upstream energy, but staying cautious on PSU banks and telecom.