Nifty likely to touch 28,781 in a year, domestic-oriented sectors to drive growth: Report

New Delhi, Oct 14 (IANS) The market benchmark Nifty is expected to touch 28,781 in about 12 months, a report said on Tuesday, citing the remarkable resilience of India's economy and equity markets in the face of global challenges, including US tariffs, H-1B visa fee hikes, and geopolitical volatility.

PL Capital forecasts a 12.1 per cent EPS compound annual growth rate for Nifty from FY25 to FY27, adding that domestic-oriented sectors like banks, autos and metals will lead growth.

The brokerage said that with normal monsoons, a 100-basis-point cut in interest rates, rationalisation of GST rates, and tax reductions announced in the FY26 Budget, the conditions are now conducive for a strong revival in consumption.

It also added that cement, metals, oil and gas are sectors to lead FY26 earnings.

India’s Q1 FY26 GDP growth reaffirmed the economy’s resilience, surpassing expectations at 7.8 per cent year-on-year, compared with 6.5 per cent in Q1 FY25 and 7.4 per cent in Q4FY25, the report said.

High-frequency indicators, including GST collections, e-way bills, services exports, and credit growth, indicate strong underlying domestic demand.

The revival of demand will likely increase private sector capacity utilisation and private capex, which have been waiting on the sidelines, PL Capital predicted.

The broking firm noted that India’s services exports are entering a new growth phase, led by digitally delivered, high-value knowledge services.

“By 2030, the country is projected to host around 2,200 Global Capability Centres (GCCs) generating over $100 billion in revenue, with total services exports expected to reach $500 billion,” the firm noted.

The talent landscape is evolving rapidly, with rising demand in areas such as AI, cybersecurity, GenAI product engineering, and sustainability analytics — further strengthening India’s position as a global innovation hub, it added.

--IANS

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