Nifty could deliver about 50% returns over the next three years if earnings and valuations play out as Dalal Street’s star stock picker Prashant Jain expects and his PMS firm 3P Investment is already tilting towards small and midcaps to capture that upside.
Arguing that India’s macro challenges are now behind us, with all four headwinds—FDI repatriation, FPI selling, gold imports and high oil—starting to recede simultaneously, Jain expects Nifty returns of 14–15% CAGR, translating into cumulative gains of 45–50% over the next three years. This forecast rests on two pillars—a low‑teens compound growth in earnings and a modest re‑rating in valuation multiples.
