The Nifty 50 could rally 20% to 27,000 by September 2027, according to Emkay Global Financial Services, which remains constructive on Indian equities despite a prolonged market correction, elevated crude oil prices and global uncertainties.
The domestic benchmark indices rose on Friday, 9 October, snapping their longest weekly losing streak in 25 years, although gains remained modest amid concerns over tighter monetary policy and rising crude oil prices. The Nifty 50 climbed 1.3% to 22,520.45, while the BSE Sensex advanced 1.23% to 72,472.33, led by IT stocks after Tata Consultancy Services' quarterly earnings highlighted growing AI-related revenue contributions and robust international business growth.
Despite Friday's rebound, the Nifty 50 declined for eight consecutive weeks, falling 8.7% over the period.
Against this backdrop, Emkay sees scope for a recovery as resilient corporate earnings, reasonable valuations and strong domestic fundamentals support the market. The brokerage has set a September 2027 target of 27,000 for the Nifty 50, implying an upside of around 20% at a valuation of 18.8 times one-year forward earnings.
Emkay expects earnings growth to remain healthy in the September quarter, even as geopolitical tensions, trade uncertainty and elevated developed-market bond yields weigh on investor sentiment.