New Delhi, Jan 17 || A “Goldilocks” year is in store for India in 2026 with double‑digit nominal growth falling rates, stable currency, and easing global risks combine to create a fertile backdrop for equities, led by metals, BFSI, capital goods, and defence, a report said on Saturday.
The report from HDFC Securities said that 2026 looks forecasted Nifty earnings growth of about 16 per cent for FY27, set a 2026 return expectation of around 11 per cent and put a year‑end Nifty target at 28,720.
RBI–government reflation push through rate cuts, CRR reduction, and liquidity infusion supports domestic demand in 2026.
Global trade uncertainty is expected to ease, with tariff reversals and an anticipated India–US trade deal in early 2026, it said.
The report highlighted corrected valuations and historically low foreign portfolio investor positioning as creating scope for upside, including short covering, while retail participation driven by record SIP flows and demat account additions remains a structural support.