Nifty may touch 29,000 in 2026

Nifty is projected to touch 29,000 next year, supported by a recovery in discretionary consumption in the second half of current fiscal (FY26), easing liquidity infusion by the Reserve Bank of India, a report showed.

The report from Emkay Global Financial Services said that a mixed capex cycle and hopes for an India‑US trade deal are other supporting factors. The financial services firm said that GST reforms and structural boosts to increase affordability should revive consumption and support a medium‑term growth cycle. The firm remains overweight on discretionary, industrials, healthcare and materials and underweight on financials, staples, IT and telecom.

“A softer rate environment and stable policy direction provides a favourable setup for India’s medium-term growth cycle,” the report said. The firm also expected healthy rainfall to aid income and consumption recovery, supported by an additional tailwind from FY26 Union Budget tax cuts.