Nifty to Hit 28,000 by 2026: Monarch Networth Picks Top Stocks
Brokerage firm Monarch Networth Capital has released a highly bullish outlook for the Indian equity markets, projecting the Nifty to reach the 27,000–28,000 range by calendar year 2026. This optimistic forecast is anchored in a projected recovery of corporate earnings and a robust cycle of private sector capital expenditure.
Drivers of the Bullish Nifty Outlook
Monarch Networth believes India's structural growth story remains resilient despite recent market volatility and sustained selling by Foreign Institutional Investors (FIIs). According to Gaurav Bhandari, CEO of Monarch Networth Capital, the recent correction in large-cap sectors appears excessive when measured against underlying fundamentals.
The brokerage provides specific earnings estimates to back its claims, forecasting Nifty Earnings Per Share (EPS) at 1,251 for FY27 and rising to 1,443 for FY28. This growth is expected to be fueled by key structural reforms such as the PLI scheme, GST, and infrastructure investments. Furthermore, corporate capex for the top 500 listed non-financial companies has nearly doubled to approximately ₹10 lakh crore compared to pre-pandemic levels, signaling a strong phase of domestic expansion.
Sectoral Leaders: Banking, Telecom, and IT
The next leg of the bull run is expected to be spearheaded by sectors that have recently underperformed due to FII outflows. Monarch identifies financials, telecom, and technology as the primary drivers of the index recovery.
While large-cap IT stocks are expected to undergo a gradual recovery, the banking sector is poised to benefit from strengthening corporate balance sheets. Additionally, the brokerage anticipates significant movement in the midcap and smallcap segments. The Nifty Midcap 150 is projected to reach 25,595, while the Nifty Smallcap 250 is expected to climb to approximately 19,640, supported by an easing interest rate cycle that reduces financing costs and enhances operating leverage.
Top Three Stock Recommendations
Monarch Networth has identified three specific stocks that offer attractive risk-reward profiles based on their unique growth catalysts:
- State Bank of India (SBI): The brokerage views SBI as a value play. Despite delivering profitability metrics comparable to top-tier private banks, SBI continues to trade at a valuation discount. Growth is expected to be driven by strong asset quality, healthy loan growth, and potential value unlocking from its subsidiaries.
- HFCL: Positioned as a play on India's digital infrastructure, HFCL is expected to benefit from the 5G rollout, data center expansion, and rising fiber demand. The company's strong order book and growing export business provide a solid foundation for an earnings turnaround.
- Hindustan Copper: As India’s only vertically integrated copper producer, this state-run miner is set to benefit from rising domestic demand. Its "Vision 2030" strategy and expansion plans make it a strong candidate for long-term capital appreciation.
Key Takeaways
- Nifty Target: Monarch Networth projects Nifty to hit 27,000–28,000 by 2026, supported by EPS growth reaching 1,443 by FY28.
- Growth Catalysts: A massive ₹10 lakh crore capex by top non-financial companies and a potential rate-cut cycle will drive market momentum.
- Top Picks: SBI (banking), HFCL (telecom/infrastructure), and Hindustan Copper (commodities) are the brokerage's preferred investment ideas.