Nifty Prediction 2026: The Indian stock market began 2026 on a strong note after a challenging 2025. On the second trading day of the new year, the Nifty index
touched a fresh all-time high of 26,340 and ended the session with solid gains of 182 points or 0.70 per cent at 26,328.55. The BSE Sensex also posted a strong performance as it climbed 573.41 points or 0.67 per cent to settle at 85,762.01. In 2025, markets went through a volatile phase, with indices hitting lows during the year before staging a steady recovery. Despite global uncertainties, including inflation concerns and geopolitical risks, both the benchmark indices Sensex and Nifty ended the year with modest gains. The Nifty 50 advanced 2,484.8 points or 10.50 per cent, while Sensex gained 7,081.59 points or 9 per cent. Mihir Vora, Chief Investment Officer at Trust Mutual Fund, has said that the Nifty index has the potential to touch the 30,000-mark in 2026 as valuations have normalised and earnings growth is showing signs of improvements. He said that investor confidence, strong domestic fundamentals and rising earnings growth have set the stage for further upsides. In an exclusive conversation with ET NOW Swadesh, Vora said that after a year of muted returns, the benchmark index could deliver 10–15 per cent gains in 2026, taking the index to mount 30,000-mark. “After a year of very low returns, a move of 10–15 per cent is possible in the Nifty index. In fact, we are seeing that Nifty’s earnings are rising in the range of 8–12 per cent. Valuations have normalised, so a 10–15 per cent return is possible, which means 30,000 is absolutely possible,” he said. Sharing his views on which sector will likely outperform in 2026, Vora said the banking and financial services sector is likely to remain in the focus as it offers a strong mix of growth and value. He said that the sector has underperformed for a very long time, adding that the credit growth was weak earlier, "but now we are seeing a pickup in credit growth." “After two years of underperformance, with good credit growth and strong asset quality, both private and public sector banks can offer good value,” Vora said. He said that banks have the highest weightage in Nifty and "when banks perform well, a large part of the Nifty gets support.” “For Nifty to move meaningfully higher, it is very important for banking and financial stocks to perform well,” he said. Talking about the key risk factors that could limit market gains, Vora said that global macro concerns remain an overhang. He said that inflation in the US continues to remain on the higher side, while bond yields in Japan are rising, which could lead to tighter monetary policies across major economies. “Inflation in the US is still high and bond yields in Japan are going up. This can create an environment of policy tightening,” he said. He further said that if the trade deal between the US and India gets delayed further, it could create uncertainty in the markets and foreign institutional investors may postpone their buying. VIDEO
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
