Market expert Sushil Kedia, founder of Kedianomics, forecasts the Nifty 50 index could reach 32,000 by the end of the current year, indicating a substantial 28% upside potential from present market levels. This bold prediction comes amid significant market volatility, with the Nifty 50 trading around 25,157.50 points as of January 21, 2026.[scanx+3]
Analyst Sees Significant Market Potential
Kedia projects the Nifty 50 will breach the 32,000 level by year-end 2026, even as Indian markets experience turbulence. He has identified 27,800 as a crucial next milestone for the benchmark index's upward trajectory. Despite recent market downturns, Kedia maintains a bullish long-term outlook for the Indian equity market.[scanx+2]
His forecast suggests a robust rally could unfold throughout the year. The market veteran advises investors to remain patient and focus on long-term gains rather than getting swayed by short-term movements.[scanx+2]
Navigating Current Market Headwinds
Kedia's optimistic outlook emerges during a period of considerable market uncertainty. Indian stock markets experienced a sharp decline on January 20, 2026, with the Nifty 50 falling 1.38% to 25,232.50 points. The Sensex also dropped 1.28% to 82,180.47 points on the same day.[scanx+1]
The Nifty 50 index has already declined 5.5% from its record high of 26,373.20, achieved on January 5. Analysts attribute this market weakness to several factors, including weak global sentiment, disappointing domestic earnings reports, and renewed trade war concerns following tariff threats on European nations. Geopolitical and tariff-related developments are also creating business uncertainty and volatility.Kedia advises investors to avoid making trading decisions during panic-driven periods, as these often precede a market bounce-back rather than a sustained crash.[scanx+2]
Budget Expected to Boost Sentiment
A significant upcoming event for the Indian markets is the Union Budget. Sushil Kedia anticipates the Budget will act as a sentiment reverser, counteracting the current downward trend. His analysis of approximately 45 past Union Budgets, including interim ones, reveals a strong historical pattern: markets rarely continue to fall sharply after a period of weakness leading up to the Budget.[scanx+1]
Kedia's research indicates a 93% probability of the Budget acting as a sentiment reversal point. He suggests that Indian stock markets have historically failed to accurately anticipate Budget outcomes. Kedia expects a "final capitulation and therefore a market bottom" to occur before the Budget, followed by a strong recovery in its aftermath.[scanx+1]
Kedia's Broader Market Outlook and Investment Strategy
Beyond the Nifty's specific target, Sushil Kedia holds a broader bullish perspective for the Indian market. He sees the Sensex potentially touching 100,000 by mid-2026, though he prefers analyzing the market through the Nifty for clearer signals.Kedia is known for his ability to predict market movements, notably forecasting the 2008 market crash when the Nifty was at its peak. His prediction was accurate, with the index falling by nearly 63%. In 2020, he made a contrarian bet on PSU banks, which also proved correct.[livemint+1]
Kedia emphasizes the importance of understanding price movements over news flow, stating that the market rewards courage, not fear. He believes that investors' biggest enemy in the markets is their own mind, and learning to suspend emotional bias allows the market to "speak clearly."[livemint+1]
He maintains a bullish outlook on specific sectors, including Fast-Moving Consumer Goods (FMCG) and experiential consumption segments. Kedia identifies multi-bagger potential in hotels, travel, leisure, and Quick Service Restaurant (QSR) stocks, citing a shift in consumer spending from asset purchases to experiences. Key picks he has highlighted include BLS International, EIH, Jubilant FoodWorks, Westlife Foodworld, Imagicaa, and Wonderla Holidays. Kedia also expresses optimism for the IT sector in 2026 and 2027, suggesting it could surprise investors.[scanx+1]
Kedia's long-term vision for the Nifty, coupled with his strategic sector picks and emphasis on disciplined investing, provides a compelling narrative for market participants navigating the current volatile environment.
