Indian equities could see significant gains, with the Nifty 50 index potentially reaching 29,500 by March 2027. Antique Stock Broking projects this rise, driven primarily by a strong earnings recovery across corporate India. The brokerage highlights ICICI Bank and State Bank of India (SBI) as top investment choices in this favorable market.^[1][2][3][4] Strong Earnings Propel Market Outlook Antique Stock Broking expects an earnings-led recovery to push Indian stocks higher. The firm forecasts the Nifty 50 index to hit 29,500 by the first quarter of 2027. This positive outlook stems from an anticipated profit upcycle in calendar year 2026.^[1][2][3] The brokerage predicts Nifty earnings will grow at a compound annual rate of about 16% between fiscal years 2026 and 2028. This growth rate is sharply higher than the roughly 7% compound annual growth recorded from FY2024 to FY2026. This significant improvement underpins the market's expected rally.^[1] Antique's analysis shows corporate earnings have a positive link with wholesale price inflation and nominal GDP growth. Both these factors are expected to return to normal levels in fiscal year 2027. This normalization should lead to a broad recovery in corporate profits.^[1] Sectors like electronics manufacturing services, telecom, industrials, and retail are likely to be among the strongest performers.^[1] The 29,500 target for the Nifty is based on a valuation of 20 times the earnings projected for fiscal year 2028.^[1] This valuation implies approximately 13% upside from current market levels.^[1] Banking Giants Lead Top Stock Picks Antique Stock Broking has identified several large-cap companies as high-conviction investment ideas. Among these, ICICI Bank and State Bank of India stand out as preferred choices. The brokerage believes these banking giants are well-positioned to benefit from the earnings upcycle in the financial sector.^[1][4] ICICI Bank is expected to thrive amid a supportive domestic economic environment. Antique projects ICICI Bank's earnings per share (EPS) to be Rs 71 in FY26, Rs 83 in FY27, and Rs 95 in FY28.^[4] State Bank of India remains a key public sector banking recommendation. Antique favors public sector lenders and notes SBI's loan growth, return on equity, and asset quality are comparable to private banks.^[4] SBI's EPS is forecast at Rs 86 in FY26, Rs 90 in FY27, and Rs 100 in FY28.^[4] Beyond banking, Antique also highlights Hindustan Aeronautics as a significant large-cap pick. This company benefits from the brokerage's defense and capital expenditure revival themes. Rising defense spending and strong project execution are expected to boost its earnings visibility.^[4] Other large-cap recommendations include Adani Power, HDFC Life Insurance, HDFC Asset Management, Solar Industries, HPCL, BHEL, and Mazagon Dock Shipbuilders.^[1] In the mid-cap segment, Antique favors companies like Siemens Energy India and Hitachi Energy. These picks align with themes of capital expenditure, defense manufacturing, and financialization, which are seen as key growth drivers for the segment.^[1][5] Macro Factors and Investor Flows Several macroeconomic factors support Antique's constructive outlook for Indian equities. The brokerage expects foreign portfolio investor (FPI) flows to stabilize and potentially revive in calendar year 2026. This follows a period in calendar year 2025 when foreign investors pulled out approximately $17.5 billion from Indian equities.^[1] Improving earnings visibility and favorable macro conditions further strengthen the positive market view. Antique believes India's "Goldilocks" phase, characterized by optimal economic conditions, is likely to continue. This phase is supported by policy measures already implemented by the government and the Reserve Bank of India.^[1] The expected finalization of bilateral trade agreements with the United States and the European Union also contributes to this optimistic outlook.^[1] Despite Indian equities trading at a premium compared to historical averages, Antique suggests that current valuations could be sustained. This is due to lower bond yields and significant differences in performance across sectors. Nearly half of the Nifty 500 stocks have already seen corrections of over 20% from their 52-week highs.^[1] Antique remains cautious and selective on consumption and mid-cap stocks.^[1] A key risk remains the continued global preference for AI-linked markets.^[1] Overall, Antique Stock Broking anticipates a robust period for Indian equities, driven by a fundamental rebound in corporate earnings and supportive economic conditions.

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