Despite the Nifty falling over 9% this year, smallcase managers remain optimistic about the FY27 outlook for India’s benchmark index, expecting it to trade in the 28,000–30,000 range by the end of the financial year. They expect the next leg of the market rally to be driven by earnings growth rather than valuation expansion, with investors likely to prioritise sustainable profitability and strong execution over aggressive re-rating.
Smallcase managers project EPS estimates for the Nifty and the BSE Sensex in the range of Rs 1,280 – Rs 1,320. Based on the expected earnings trajectory, the index is likely to trade within a valuation band of 22X–24X, reflecting confidence in India’s domestic growth momentum and corporate profitability, a media release.
