BofA Sees 12% Upside for Nifty to 26,200 by December 2026

BofA Securities has turned bullish on the Nifty, forecasting a 12% upside to 26,200 by December 2026. The brokerage expects potential US Federal Reserve rate hikes and primary-market issuances to peak by October, creating room for a rally from November. It forecasts Nifty earnings growth of 10% in FY27 and 15% in FY28. BofA prefers large caps over small- and mid-cap stocks, citing a valuation premium of 43% down from a peak of 53%.