Nomura Forecasts Strong Gains for Indian Markets, Nifty Target 29,300

Nomura Bullish on Indian Markets, Sees Nifty at 29,300 in 2026.

Nomura has set a 2026 target for the Nifty at 29,300, implying nearly a 13% upside from Tuesday’s close of 26,032.20, when the index fell 144 points, or 0.6%.

The brokerage highlighted top stock picks including ICICI Bank, Infosys, Bajaj Finance, Mahindra & Mahindra, Axis Bank, Titan, UltraTech Cement, Godrej Consumer Products, LG Electronics, CG Power, Swiggy, Dr Reddy’s, Dixon Technologies, Alkem, Mahindra Finance, Sona Comstar, eClerx, Aditya Birla Real Estate, and MedPlus.

Nomura cited a positive valuation outlook supported by easing geopolitical tensions, stable macroeconomic conditions, and a cyclical recovery in corporate earnings. The brokerage also noted that Indian equities have underperformed most global peers over the past 14 months, bringing valuation premiums closer to historical averages.

Other global brokerages, including Goldman Sachs and HSBC, have projected Nifty and Sensex gains of 12% and 10%, respectively, for 2026.

While Nomura does not expect a sharp surge in foreign portfolio inflows, it anticipates marginal improvement next year. The brokerage said, “If the global rally and AI-driven trades moderate, FII interest should improve, as the valuation premium is now aligned with long-term averages.”