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BofA Turns Bullish on Indian Equities After Two Years, Sets Nifty Target at 26,200
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CNBC TV18•08-10-2026, 11:47
BofA Turns Bullish on Indian Equities After Two Years, Sets Nifty Target at 26,200
- •BofA Securities has turned constructive on Indian equities after nearly two years of caution, setting a year-end Nifty target of 26,200.
- •The brokerage expects 10 to 15 percent earnings growth this fiscal year, driven by resilient domestic economic fundamentals and attractive valuations.
- •Foreign investor outflows are primarily due to capital flowing toward global artificial intelligence opportunities rather than concerns over India's economy.
- •BofA forecasts another 100 basis points of rate hikes by the Reserve Bank of India over the next six to nine months to counter inflation risks.
- •Primary market activity is expected to remain healthy with robust initial public offering pipelines and strong investor appetite.
Key Questions Answered
BofA Securities has set a year-end Nifty target of 26,200, which represents a 15-16% upside from current levels. The brokerage expects 10-15% earnings growth for the fiscal year.
Foreign portfolio outflows are driven by capital flowing toward global artificial intelligence (AI) opportunities rather than any underlying concerns regarding India's resilient economic fundamentals.
Following the Reserve Bank of India's latest policy decision, BofA expects the central bank to continue raising interest rates over the next six to nine months, forecasting another 100 basis points of rate hikes due to persistent inflation risks.
