The base case assumes the Nifty index with a 12-month target of 27,958. In a bullish scenario, a 20x multiple implies upside toward 30,497, while a conservative bear case suggests 26,486.
Equity markets appear poised for their next leg of expansion after nine months of tight consolidation, with the Nifty trading in a narrow 5–6 per cent band amid global uncertainties and earnings recalibrations. According to PL Capital’s latest India Strategy report, the index has weathered a 9–9.5 per cent moderation in FY26–27 EPS estimates, yet underlying corporate performance remains resilient.
The base case assumes the Nifty index with a 12-month target of 27,958. In a bullish scenario, a 20x multiple implies upside toward 30,497, while a conservative bear case suggests 26,486.
The brokerage remains overweight on banks, diversified financials, healthcare, consumer, auto and capital goods/defence, citing sustained infrastructure spending and asset creation. It is underweight IT services and commodities, while preferring select cement and metals names.
Top picks and high-conviction
PL Capital’s large-cap top picks include Adani Port & SEZ, Britannia Industries, Hindustan Aeronautics, ICICI Bank, Larsen & Toubro, Mahindra & Mahindra, Shriram Finance, Tata Steel and Titan Company.
Among mid- and small-caps, it favours HealthCare Global Enterprises, Ingersoll-Rand (India), Ipca Laboratories, KEI Industries and LG Electronics India.
The brokerage has dropped HDFC Life Insurance Company, State Bank of India, Aster DM Healthcare, Fine Organic Industries and Max Healthcare Institute from its high-conviction list. In their place, it has added HealthCare Global Enterprises, Ingersoll-Rand (India) and Ipca Laboratories.
Trade diplomacy and capex push
PL Capital identifies India’s accelerating trade diplomacy as a defining catalyst. The recently concluded India–EU Free Trade Agreement, covering nearly 19 per cent of India’s exports, grants preferential access across 97 per cent of tariff lines and 99.5 per cent of trade value. Immediate duty elimination on over 70 per cent of tariff lines is expected to benefit textiles and apparel, marine products, leather, gems and jewellery, chemicals, machinery and electrical equipment.
The services component also opens opportunities for IT and ITeS, financial services, telecom, education and digital trade, alongside collaboration in semiconductors and critical electronics.
Published on February 25, 2026
