In a significant forecast for India's financial markets, domestic brokerage firm Axis Securities has projected a robust turnaround for domestic equities, setting a Nifty 50 target of 28,100 by 2026. The firm's latest outlook report suggests that after a period of expected volatility in 2025, the following year will witness a powerful reversal in market performance.
From Volatility to a Constructive Phase
Axis Securities identifies that key challenges which have recently dampened investor sentiment are likely to diminish. The brokerage points to weak corporate earnings, stretched valuations, and concerns over tariffs as primary headwinds that have weighed on the market. According to their analysis, these pressures are anticipated to ease in the coming year.
This sets the stage for 2026 to become a far more constructive period for Indian equities. The market is expected to undergo a crucial transition, moving away from a phase dominated by valuation adjustments and consolidation. Instead, it is predicted to enter a new, sustainable earnings-driven cycle.
The Pillars of the Bullish Outlook
Several converging factors create a compelling investment thesis for 2026. Axis Securities highlights favourable domestic macroeconomic conditions and continued policy support from the government. Furthermore, the brokerage anticipates a resolution to the lingering US tariff-related issues, which would remove a significant overhang from global markets.
The combination of these elements is seen as the fuel that could propel the benchmark Nifty 50 index to the 28,100 level. This projection underscores a belief in the resilience and growth potential of the Indian economy amidst global uncertainties.
Sectors Poised for Outperformance
Within this promising landscape, Axis Securities has pinpointed specific sectors that are best positioned to deliver compounded earnings growth over the next market cycle. The brokerage shows strong conviction in financials and healthcare.
These sectors are favoured due to their strong alignment with India's domestic growth story. They are supported by:
- Robust domestic growth drivers that are less dependent on the global environment.
- Healthy balance sheets that provide a foundation for stability and expansion.
- Significant pricing power, which allows them to navigate inflationary pressures and maintain profitability.
In a potentially volatile global setting, these attributes make financial and healthcare companies attractive candidates for sustained wealth creation, according to the Axis Securities analysis.
The 2026 outlook from Axis Securities paints an optimistic picture for Indian investors, suggesting that patience through near-term volatility could be rewarded with a strong, earnings-led bull market in the subsequent year.
