BofA predicts Nifty 26,200 by December, 10-15% FY earnings growth
Bank of America (BofA) Securities is feeling upbeat about Indian stocks, predicting the Nifty index could climb to 26,200 by December, a solid 15% to 16% jump from where it stands now.
Arbind Maheswari, who heads India Equities at BofA, says this confidence comes from stronger earnings forecasts and decent stock valuations.
Even with global worries like inflation and high oil prices, BofA expects Indian companies' earnings to grow by 10% to 15% this fiscal year.
BofA: US AI behind India outflows
While some foreign investors have pulled money out of India lately, BofA points out that it's mostly because global funds are chasing AI opportunities in the US not because there's anything wrong with India's economy.
In fact, sectors like data centers and AI infrastructure are still attracting fresh investment here.
Maheswari highlights that steady government spending and healthy tax revenues are keeping India on a strong growth path.