Nomura raises Nifty target to 24,970 by Mar 2026 as index climbs to 24,000

Nomura has revised its Nifty target to 24,970 for March 2026, up from its earlier target of 23,784 for December 2025.

 

The brokerage expects the Nifty to trade at 19.5 times its estimated earnings of Rs 1,280 for FY27, compared with an earlier multiple of 18.5 times.

 

Nomura projects the Nifty to trade within a 17-20 times valuation range, offering potential returns of minus 9 per cent to plus 7 per cent over the next 12 months.

 

The Nifty last traded at 24,000, having rebounded over 10 per cent from this month’s lows.

 

A stable risk environment could revive foreign portfolio investor inflows after six months of sustained selling, the brokerage believes.

 

 

Nomura recommends a selective investment approach, prioritising domestic sectors such as consumption and companies expected to benefit from supply chain shifts.

 

Financials are favoured for their low earnings risk and attractive valuations, followed by consumer staples, discretionary, automobiles, oil and gas, telecom, power, internet, real estate, and select healthcare stocks.

 

The brokerage remains cautious on export-driven sectors such as information technology, industrials, cement, and metals, and flags near-term tariff risks for pharmaceuticals, though a market correction could provide buying opportunities.

 

Indian equities have recouped all losses suffered after the United States “Liberation Day” tariff announcement on April 2. Domestic sectors, including consumer goods and financials, have outperformed, while export-oriented sectors such as information technology, metals, automobiles, and pharmaceuticals have lagged amid global trade tensions.

 

Nomura underscores India’s resilience amid trade-related uncertainty, citing stable macroeconomic fundamentals and falling commodity and oil prices. Market sentiment is also supported by prospects of a US–India trade agreement and India’s positioning as a preferred destination for supply chain relocation.

 

However, Nomura warns of risks to growth and earnings forecasts, pointing to weaker economic data and the potential for a rise in equity risk premiums.