A faster earnings outlook accompanies Bank of America Securities’ unchanged 26,200 target for India’s Nifty 50 in December 2026, according to reports by NDTV Profit and Investing.com.
The target is about 4.6% above the index’s Nov. 9 close of 25,044.65, according to the National Stock Exchange of India (NSE).
Both reports said BofA estimated Nifty-company earnings growth at 18% in FY27’s second quarter, compared with 5% in FY26’s fourth quarter. NDTV Profit also reported the brokerage’s estimate of 13% growth in FY27’s first quarter.
Investing.com reported that BofA valued the index at 18.3 times one-year forward earnings, below a cited long-term average of 18.8 times.
The reports said BofA upgraded hospitals and telecommunications and became more cautious on two-wheelers. NDTV Profit said the hospital and telecom upgrades reflected defensive earnings prospects and improved valuations.
BofA favored large-cap stocks over small- and mid-caps, both outlets reported. NDTV Profit said the brokerage cited weaker earnings revisions, limited deleveraging in margin-trading funding (MTF) and possible pressure on rural and capital-expenditure-linked businesses as reasons for caution on smaller companies. The outlet reported BofA estimated MTF-led deleveraging at 4.8%, compared with 10% to 20% in earlier market corrections, and put small-caps at nearly 45% of MTF exposure.
NDTV Profit also reported that BofA flagged geopolitical developments, U.S. Federal Reserve rate decisions, El Niño and the Eighth Pay Commission. The outlet said the brokerage estimated higher commission payouts could add about 60 basis points to government expenditure in FY28 and expected more clarity on monsoon and pay-related issues only after May 2027.
