- Nifty 50 could rise to 27,000, supported by strong FY27 earnings growth forecasts
- MSCI India firms reported 19% revenue and 16% profit growth in Q1, strongest since 2024
- 58% of companies beat JPMorgan profit estimates with broad sector earnings participation
The Nifty 50 could rise to 27,000, JPMorgan reiterated, as stronger-than-expected FY27 earnings point to improving corporate performance. The brokerage said MSCI India companies posted 19% year-on-year revenue growth and 16% profit-after-tax growth in the June quarter, marking the strongest earnings growth since June 2024.
JPMorgan said 58% of companies beat its profit estimates, while earnings growth showed broader participation across sectors. Financials, industrials and consumer discretionary were among the key contributors, while energy remained weak.
“The FY27 earnings season started on a stronger-than-expected note, with MSCI India companies' revenue and profit growing 19% and 16% YoY in Q1,” JPMorgan said in its India Equity Strategy report.
Estimates Rise
The brokerage said consensus earnings estimates for 2026-27 rose 0.6% over the past month, led by revisions for companies including HDFC Bank, IndusInd Bank, Axis Bank, Bharti Airtel and Hindalco.
JPMorgan expects domestic cyclicals to support earnings growth as resilient domestic demand offsets an uncertain external environment. It expects full-year earnings growth to accelerate from the first quarter.
The brokerage's base, bull and bear-case Nifty 50 targets are 27,000, 30,000 and 20,500, respectively.
Sector Outlook
JPMorgan remains overweight financials, industrials, consumer discretionary and materials, while it is underweight information technology.
It said investors should track developments around the US-India trade deal, crude oil, the rupee, monsoon, GST cuts, the Reserve Bank of India's policy decision and mid-term elections.
Catch all the live updates on stock markets here.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.