Nifty to Hit 28,000 by 2026: Monarch Networth Predicts Bull Run
Brokerage firm Monarch Networth Capital has issued a highly bullish outlook for the Indian equity markets, forecasting the Nifty to reach the 27,000–28,000 range by calendar year 2026. This projection is underpinned by a robust recovery in corporate earnings, sustained capital expenditure, and a favorable interest rate environment.
Earnings Growth and Structural Drivers
Monarch Networth’s optimism is rooted in significant projected growth in earnings per share (EPS). The brokerage estimates the Nifty EPS will climb to 1,251 for FY27 and further to 1,443 for FY28. According to Gaurav Bhandari, CEO of Monarch Networth Capital, the recent market corrections in large-cap sectors, driven by sustained Foreign Institutional Investor (FII) selling, appear excessive when measured against underlying fundamentals.
The brokerage highlights that India's long-term growth story remains intact, bolstered by structural reforms such as GST, RERA, the Production-Linked Incentive (PLI) scheme, and corporate tax reforms. A key driver is the massive surge in private sector capital expenditure; the capex of the top 500 listed non-financial companies has nearly doubled to approximately ₹10 lakh crore compared to pre-pandemic levels.
Sectoral Leaders and Midcap Potential
The next phase of the bull market is expected to be led by the banking, telecom, and technology sectors. These industries have faced recent underperformance due to FII outflows but are poised for a recovery.
Beyond large-caps, Monarch Networth is increasingly constructive on the midcap and smallcap segments. After an 18-month period of valuation correction and earnings adjustment, the risk-reward profile has improved significantly. The brokerage expects the Nifty Midcap 150 index to reach around 25,595, while the Nifty Smallcap 250 index is projected to climb to approximately 19,640. This growth may be further accelerated by the ongoing rate-cut cycle, which historically supports smaller companies by reducing financing costs and enhancing operating leverage.
Top Stock Picks for Investors
Monarch Networth has identified three specific stocks that offer compelling opportunities across different sectors:
- State Bank of India (SBI): The brokerage views SBI as an attractive play due to its strong asset quality and healthy loan growth. Despite delivering profitability metrics similar to top private-sector banks, SBI continues to trade at a valuation discount, offering potential value unlocking through its subsidiaries.
- HFCL: Positioned as a beneficiary of long-term structural themes, HFCL is expected to thrive due to the 5G rollout, data center expansion, and rising fiber demand. The company’s strong order book and growing export business support a positive 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 ongoing expansion plans provide a strong long-term growth runway.
Key Takeaways
- Bullish Nifty Forecast: Monarch Networth expects Nifty to reach 27,000–28,000 by 2026, driven by projected EPS growth of 1,443 by FY28.
- Sectoral Rotation: Financials, telecom, and IT are expected to lead the recovery, while midcap and smallcap indices are poised for significant gains following valuation normalization.
- Strategic Stock Picks: SBI (banking), HFCL (telecom/infrastructure), and Hindustan Copper (commodities) have been identified as top picks for their specific growth catalysts.