From mint · Dhanya Nagasundaram · · 1m 30s
Nifty 50 Target 27,000 by Sept 2027
Emkay Global Financial Services forecasts Nifty 50 to rise 20% to 27,000 by September 2027 despite recent market correction.
In brief
Emkay Global Financial Services forecasts Nifty 50 to rise 20% to 27,000 by September 2027 despite recent market correction. Emkay Global Financial Services predicts Nifty 50 will reach 27,000 by September 2027 due to resilient earnings, reasonable valuations, and strong domestic fundamentals. Originally reported by…
Nifty 50 Target 27,000 by Sept 2027
Emkay Global Financial Services expects Nifty 50 to rise nearly 20% to 27,000 by September 2027.
Market Correction Context
Nifty 50 declined for eight consecutive weeks, falling 8.7% over the period.
Resilient Corporate Earnings
Emkay expects Q2 FY27 revenue growth of 24.8% and adjusted profit growth of 21.5% year-on-year.
Valuation Correction
Nifty's one-year forward price-to-earnings ratio has fallen below its long-term average.
Domestic Fundamentals
Sustained economic growth and healthy domestic demand support Indian equities over the medium term.
Key Risks
Elevated crude oil prices and narrow India-US 10-year government bond yield differential of 204 basis points weigh on the current account deficit.
Downside Scenario
Nifty could fall to 21,000 if crude oil prices remain above $100 per barrel and government bond yield spreads stay narrow.
Target Rationale
Emkay's target of 27,000 implies a valuation multiple of 18.8 times one-year forward earnings.
What Drives the Rally
Corporate earnings momentum, macroeconomic stability, and improved valuations could support the Nifty 50 recovery.
Market Reaction
Nifty 50 climbed 1.3% to 22,520.45 on Friday, snapping its longest weekly losing streak in 25 years.
Here's the gist
Emkay Global Financial Services predicts Nifty 50 will reach 27,000 by September 2027 due to resilient earnings, reasonable valuations, and strong domestic fundamentals.
