Monarch Networth Capital Predicts Nifty 50 to Hit 27,000-28,000 by CY2026

Indian equities are poised for significant upside in the coming years, with brokerage firm Monarch Networth Capital predicting the Nifty 50 to hit 27,000-28,000 during CY2026, driven by a recovery in corporate earnings and a favourable monetary policy environment.

Monarch Networth Capital’s Bullish Outlook

The brokerage estimates Nifty earnings per share (EPS) at 1,251 for FY27 and 1,443 for FY28, underpinning its positive outlook on Indian equities.

According to Gaurav Bhandari, Chief Executive Officer of Monarch Networth Capital, India’s long-term growth trajectory remains strong, aided by structural reforms such as the Goods and Services Tax (GST), Real Estate (Regulation and Development) Act (RERA), the Production Linked Incentive (PLI) scheme, corporate tax reforms, infrastructure spending and increasing formalisation of the economy.

Key Drivers of Growth

The brokerage believes these reforms, along with favourable demographics, rising financialisation of savings, robust foreign exchange reserves and the ongoing shift in global manufacturing towards India, provide a strong foundation for sustained earnings growth across sectors.

Market Impact and Details

• The recent correction in several large-cap sectors due to persistent foreign institutional investor (FII) selling appears excessive relative to underlying fundamentals.
• Corporate India’s resilience is visible in the capital expenditure growth of the top 500 listed non-financial companies, which has nearly doubled to around ₹10 lakh crore compared with pre-pandemic levels.
• According to Bhandari, corporate balance sheets have also strengthened considerably, with net debt-to-equity ratios falling to multi-year lows and operating cash flow generation remaining healthy, positioning companies to accelerate investments and drive the next phase of earnings growth.

Key Takeaways

• Monarch Networth Capital expects the Nifty 50 to hit 27,000-28,000 during CY2026.
• The brokerage estimates Nifty earnings per share (EPS) at 1,251 for FY27 and 1,443 for FY28.
• Monarch Networth Capital remains constructive on select small- and mid-cap stocks, citing attractive valuations following a prolonged correction and improving earnings prospects.

FAQs

What is the expected growth trajectory of the Nifty 50?

Monarch Networth Capital expects the Nifty 50 to hit 27,000-28,000 during CY2026.

What are the key drivers of growth in Indian equities?

The brokerage believes that structural reforms, favourable demographics, rising financialisation of savings, robust foreign exchange reserves and the ongoing shift in global manufacturing towards India provide a strong foundation for sustained earnings growth across sectors.

What are the top stock picks of Monarch Networth Capital?

Among its preferred stock ideas, Monarch Networth Capital highlighted State Bank of India (SBI), citing strong asset quality, healthy loan growth, sustainable profitability and potential value unlocking through subsidiaries. The brokerage is also positive on Himachal Futuristic Communications Limited (HFCL), driven by its earnings turnaround, record order book, growing export business and exposure to long-term themes such as 5G rollout, data centre infrastructure, defence manufacturing and fibre demand. Hindustan Copper is another preferred pick, citing India’s growing copper demand, the company’s capacity expansion plans under its Vision 2030 strategy and its position as the country’s only vertically integrated copper producer as key growth drivers.

Conclusion

Monarch Networth Capital’s bullish outlook on Indian equities is driven by a recovery in corporate earnings and a favourable monetary policy environment. The brokerage’s predictions and top stock picks offer a compelling case for investors to consider in the coming years. As the Indian economy continues to grow and mature, investors would do well to keep a close eye on the developments in the sector and consider the opportunities presented by the likes of State Bank of India (SBI), Himachal Futuristic Communications Limited (HFCL) and Hindustan Copper.