BofA Securities is turning constructive on India’s Nifty 50, saying it expects the index to rise to around 26,200 by December 2026. The firm frames this as a shift from earlier caution, noting that several previously flagged risks have already played out.
In its view, earnings growth for the Nifty remains a key driver, with expectations of about 10% growth in FY27 and 15% in FY28, figures that it compares with broader Street estimates. BofA also outlines areas it still watches, including primary market issuance, the impact of potential U.S. Federal Reserve rate actions, and ongoing disruption from artificial intelligence.
While BofA’s stance becomes more positive for large-cap exposure, it also becomes more cautious on small- and mid-cap segments. One report says it is moving away from earlier preferences for SMIDs and recommending a shift toward large-caps, even as it continues to see selected opportunities in parts of the small- and mid-cap universe. Overall, the outlets present the change as a risk-and-earnings-driven recalibration rather than an across-the-board call for all market segments.
