Brokerage firm Monarch Networth Capital expects the Nifty 50 to hit 27,000-28,000 during CY2026, implying significant upside from current levels of around 23,600, supported by a recovery in corporate earnings and a favourable monetary policy environment.

The brokerage estimates Nifty earnings per share (EPS) at 1,251 for FY27 and 1,443 for FY28, underpinning its positive outlook on Indian equities.

According to Monarch Networth Capital, India’s long-term growth trajectory remains strong, aided by structural reforms such as the Goods and Services Tax (GST), Real Estate (Regulation and Development) Act (RERA), the Production Linked Incentive (PLI) scheme, corporate tax reforms, infrastructure spending and increasing formalisation of the economy.

The brokerage believes these reforms, along with favourable demographics, rising financialisation of savings, robust foreign exchange reserves and the ongoing shift in global manufacturing towards India, provide a strong foundation for sustained earnings growth across sectors.

Gaurav Bhandari, Chief Executive Officer of Monarch Networth Capital, said the recent correction in several large-cap sectors due to persistent foreign institutional investor (FII) selling appears excessive relative to underlying fundamentals.

“We expect Nifty recovery to be led by banking stocks, telecom companies and a gradual improvement in large-cap IT,” Bhandari said.

He added that corporate India’s resilience is visible in the capital expenditure growth of the top 500 listed non-financial companies, which has nearly doubled to around ₹10 lakh crore compared with pre-pandemic levels.

According to Bhandari, corporate balance sheets have also strengthened considerably, with net debt-to-equity ratios falling to multi-year lows and operating cash flow generation remaining healthy, positioning companies to accelerate investments and drive the next phase of earnings growth.

Positive on midcaps and smallcaps

Monarch Networth Capital said it remains constructive on select small- and mid-cap stocks, citing attractive valuations following a prolonged correction and improving earnings prospects.

“The correction witnessed in large-cap sectors due to sustained FII selling appears excessive relative to underlying fundamentals. At the same time, we are even more constructive on select small and midcap companies where time correction, earnings growth and valuation normalisation over the last 18 months have created attractive stock-picking opportunities,” Bhandari said.

The brokerage expects the Nifty Midcap 150 index to reach around 25,595 levels and the Nifty Smallcap 250 index to climb to approximately 19,640.

Top stock picks

Among its preferred stock ideas, Monarch Networth Capital highlighted State Bank of India (SBI), citing strong asset quality, healthy loan growth, sustainable profitability and potential value unlocking through subsidiaries. The brokerage is also positive on Himachal Futuristic Communications Limited (HFCL), driven by its earnings turnaround, record order book, growing export business and exposure to long-term themes such as 5G rollout, data centre infrastructure, defence manufacturing and fibre demand.

Hindustan Copper is another preferred pick, citing India’s growing copper demand, the company’s capacity expansion plans under its Vision 2030 strategy and its position as the country’s only vertically integrated copper producer as key growth drivers.

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Published on June 16, 2026