Nifty to hit 54000 by 2030? Anand Rathi thinks it's possible, lists reasons

Nifty50 outlook: Analysts expect this momentum to sustain as India continues to chart its growth path through structural reforms, strong consumption trends, and improving corporate profitability.

Nifty50 new target: Domestic brokerage Anand Rathi is bullish on Indian equities, forecasting the Nifty50 to climb to 42,000-54,000 levels by 2030.

 

The brokerage said India’s stock market has structurally evolved from a cyclical outperformer to a long-term wealth compounding destination, supported by robust macro fundamentals, stable currency, and deepening domestic participation.

 

According to Sujan Hajra, Sweta Jain and Raj Singh of Anand Rathi, Indian equities have outperformed most global peers, delivering an average annual USD return of around 17 per cent between 2020 and 2025 – considerably higher than both developed and emerging markets. 

 

Analysts expect this momentum to sustain as India continues to chart its growth path through structural reforms, strong consumption trends, and improving corporate profitability.   

 

Here are the five key factors driving Anand Rathi’s optimism:

 

The big picture

 

India has emerged as one of the best-performing equity markets globally. With nominal GDP growth projected at 10-11 per cent, Anand Rathi analysts expect the Nifty50 to touch 42,000-54,000 by 2030, signaling a shift from cyclical to structural outperformance. 

 

The brokerage believes this long-term dominance reflects India’s transition into a durable, broad-based growth story.

 

Growth Drivers: Why India stands out

 

India’s growth is domestically driven, powered by rising consumption and investments rather than exports. The number of affluent Indians has surged from 2 crore in 2000 to 15 crore in 2024, and could reach 24 crore by 2030, underpinning purchasing power and demand. 

 

Moreover, poverty levels have fallen sharply, with only 5 per cent of the population below the $3-a-day threshold, creating a large middle class and a robust base for consumption-led expansion.

 

Valuations: Premium but justified

 

While Indian equities trade at a premium compared with peers, analysts said this is justified by strong return ratios (RoCE ~14 per cent), high promoter ownership (~50 per cent), and limited free float. 

 

The dominance of family-owned businesses ensures governance stability and investor confidence, while constrained supply keeps demand-supply dynamics favourable.

 

Flows & Ownership: The domestic power shift

 

The brokerage highlighted a structural shift in equity ownership, with domestic institutions replacing FPIs as key market anchors.  

Source: Anand Rathi  

  Mutual funds and insurers have steadily raised equity exposure, and household participation has doubled since 2015, driven by digitisation and financial awareness. This “Atmanirbhar Bharat 2.0” ensures markets are less dependent on foreign flows.

 

Currency & macro stability

 

Anand Rathi also cited the rupee’s resilience as a critical support factor. With $650+ billion in forex reserves, robust services exports, and record remittances, India’s macro position remains solid. 

 

Reduced oil dependency and diversified capital inflows further boost stability, making India’s growth story both sustainable and self-reliant.

 

That said, the brokerage believes India’s equity markets are entering a decade of structural compounding, driven by strong fundamentals, resilient capital flows, and an increasingly confident domestic investor base.