Nifty 50 seen rising up to 25 per cent by FY27 end: Report

A report by OmniScience Capital projects the Nifty 50 to reach 28,000–31,000 by March 2027, driven by earnings growth, stable macro conditions, and sectoral strength in banks and power, while cautioning on IT stocks due to global uncertainties

New Delhi: India’s benchmark Nifty 50 could be in the 28,000–31,000 range by the end of March 2027, implying a 15 per cent to 25 per cent upside from current levels, a report said on Wednesday.

The report from investment management firm OmniScience Capital underpinned the outlook on FY27 Nifty 50 earnings per share of Rs 1,280 to Rs 1,320 and projected an earnings growth of 10 per cent–13 per cent.

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It forecasted a potential re-rating driven by easing geopolitical tensions, moderating crude prices, a strengthening INR, and a softer inflation outlook. These factors could enable the RBI to hold interest rates steady and also support renewed FII inflows, the firm said.

Over the past 25 years the index has delivered roughly 14.26 per cent compound annual growth including dividends.

“Market is significantly undervalued and even at moderate earnings growth rate returns are likely to be quite rewarding for the long-term investors who can tolerate volatility,” said Vikas V Gupta, CEO & Chief Investment Strategist, OmniScience Capital.

The report highlighted sectoral opportunities, mainly banks as well positioned, with gross non‑performing assets below 2.5 per cent, capital adequacy around 17 per cent and provision coverage near 76.6 per cent.

This positions them to fund incremental credit of roughly Rs 94 lakh crore without fresh equity. A sustained government and corporate capex cycle should drive multiyear credit growth and earnings visibility.

The power sector is expected to benefit from Rs 65–70 capex opportunity, backed by strong policy support, it said.

Rising electricity demand—potentially tripling—along with new-age consumption (EVs, data centers) adds durable visibility, the report added.

“We are overweight on banks, financial services, and the power sector, driven by strong earnings growth, healthy balance sheets, and significant capital allocation toward capacity expansion,” said Ashwini Shami, President & Chief Portfolio Manager, OmniScience Capital.

Despite recent corrections, IT stocks remain at fair-to-elevated valuations relative to growth visibility. Ongoing uncertainty around AI disruption and global tech spending warrants caution, the report warned.