Nifty Target 28,000 by 2026: Monarch Networth Forecasts Bull Run

Brokerage firm Monarch Networth Capital has projected a significant bullish trajectory for the Indian equity markets, predicting that the Nifty could reach the 27,000–28,000 range by the calendar year 2026. This optimistic outlook is underpinned by a projected recovery in corporate earnings and a robust expansion in private sector capital expenditure.

Drivers of the Nifty Bull Run

Monarch Networth believes India's structural growth narrative remains resilient despite recent market volatility and sustained selling by Foreign Institutional Investors (FIIs). The brokerage argues that the recent correction in large-cap sectors has been excessive when compared to underlying fundamentals.

Key growth drivers identified include:

Sectoral Outlook and Midcap Potential

The next phase of market gains is expected to be led by banking, telecom, and a gradual recovery in large-cap IT stocks—sectors that have recently underperformed due to FII outflows.

Furthermore, Monarch is increasingly constructive on the midcap and smallcap segments. Following an 18-month period of valuation correction and earnings adjustment, the risk-reward profile has improved. The brokerage forecasts the Nifty Midcap 150 index to reach 25,595 and the Nifty Smallcap 250 index to climb to approximately 19,640. An easing monetary policy and the ongoing rate-cut cycle are expected to act as major catalysts for these smaller companies by reducing financing costs and enhancing operating leverage.

Top Three Stock Picks

To capitalize on these trends, Monarch Networth has highlighted three specific stocks with high growth potential:

  1. State Bank of India (SBI): Viewed as an attractive risk-reward play, SBI is noted for its strong asset quality, healthy loan growth, and sustainable profitability. The brokerage highlights that SBI trades at a valuation discount despite delivering metrics comparable to top private sector banks.
  2. HFCL: The brokerage is positive on this player due to an earnings turnaround, a robust order book, and an expanding export business. Growth is expected to be driven by 5G rollouts, data center expansion, and defense manufacturing.
  3. Hindustan Copper: As India’s only vertically integrated copper producer, the state-run miner is positioned to benefit from rising domestic demand and its strategic "Vision 2030" expansion plans.

Key Takeaways