Indian equity markets could be in for another strong leg of growth over the next two years, with several brokerages projecting Nifty at 32,000 and Sensex at 1,07,000 by the end of 2026 under their bull-case scenarios.
So far in 2025, benchmark indices have already delivered solid returns. The Sensex has climbed over 6,000 points, or around 8 percent, while the Nifty has gained more than 2,000 points, translating into a 9 percent rise. This steady performance has reinforced confidence among market participants despite intermittent volatility.
According to brokerage estimates, the optimistic outlook for 2026 is driven by a combination of robust earnings growth, improving macroeconomic stability, strong domestic consumption, and sustained government-led capex. Expectations of lower interest rates globally, stable inflation, and resilient corporate balance sheets are also seen as key tailwinds.
Experts note that while near-term market swings cannot be ruled out, India’s long-term growth story remains intact, supported by structural reforms, rising manufacturing capacity, and increasing participation from domestic investors. In the bull-case scenario, valuation re-rating along with healthy profit growth could push benchmarks to these record levels.
However, brokerages caution that these targets assume favourable global conditions and continued earnings momentum, and investors should remain selective, focusing on quality stocks with strong fundamentals as markets move higher toward 2026.
