The Nifty 50 has rallied nearly 11% in November so far, crossing the 25,400 mark on Wednesday. The latest rally in the Indian stock market has been supported by strong foreign portfolio investor (FPI) inflows, better-than-expected September quarter earnings and easing geopolitical tensions.
With market sentiment improving, global brokerages Citi, Bernstein and BofA Securities expect further upside in the benchmark index, although their targets and investment horizons differ.
Citi has the most bullish outlook with Nifty 50 target of 28,000 for December 2027, Bernstein sees the index reaching 26,100 by December 2026. BofA Securities has retained its year-end target of 26,200.
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Citi Sees Nifty At 28,000
Global investment bank Citi has raised its Nifty 50 target to 28,000 from 26,000 earlier, implying an upside of around 12% from current levels. It has also increased its target valuation multiple to 18 times from 17 times and extended its investment horizon to December 2027.
Citi's optimism is supported by four factors: strong Q2 earnings, lower crude oil prices, slower artificial intelligence (AI) capital expenditure growth and improving foreign institutional investor flows.
The brokerage expects Indian corporate earnings to grow at a compounded annual growth rate (CAGR) of 15-16% over FY26-FY28. It estimates that every $10 decline in crude oil prices could improve India's current account deficit by 30-40 basis points and lower inflation by 50 basis points, potentially driving a 2% upgrade in Nifty earnings per share.
Citi has also added Bajaj Finance to its top picks, citing visibility of over 25% growth and healthy provisioning buffers.
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Bernstein Raises December Target To 26,100
Bernstein hiked its December 2026 Nifty 50 target to 26,100 from 25,000 earlier, valuing the index at 18.5 times its estimated FY28 earnings.
The brokerage firm has retained its near-term Trading Buy rating but maintained a Neutral outlook on Indian equities over the next 12 months.
It believes easing US-Iran tensions, moderating crude prices, lower bond yields and improving fund flows could sustain the near-term rally. Bernstein also highlighted strong earnings momentum, with Nifty 50 companies reporting 20% earnings growth in Q2 FY27.
However, it cautioned that expensive valuations, weak demand and limited earnings upgrades could constrain a sustained rally.
BofA Maintains Nifty Target At 26,200
BofA Securities has retained its year-end Nifty target of 26,200, implying an upside of around 4.7% from current levels.
The brokerage believes most major risks are now understood and reflected in valuations, while improving earnings growth could support further gains.
BofA expects earnings growth to accelerate to 18% in Q2 FY27 from 5% in Q4 FY26. It also prefers large-cap stocks over midcaps and smallcaps, citing weaker earnings revisions and potential pressure on smaller companies.
The brokerage has upgraded hospitals and telecom while turning cautious on two-wheeler stocks.
Overall, improving earnings, softer crude prices and foreign fund inflows remain key drivers of the market's optimism. However, geopolitical developments, oil price volatility, El Niño risks and concerns around AI-led disruption could trigger intermittent volatility.
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