Bullish Nifty 28K by 2026: Monarch Networth Favors SBIN, HFCL

Monarch Networth Capital has issued a bullish forecast for the Nifty, predicting it will reach 27,000-28,000 by 2026. This projection is underpinned by expectations of robust earnings recovery, increased capital expenditure, and a favorable lower interest rate environment in India.

This forecast provides a strong long-term directional cue for the Indian equity market, reinforcing the narrative of India's growth potential. For traders, it suggests that current market dips could be viewed as accumulation opportunities, especially in sectors identified as key drivers for this growth.

The banking sector, represented by SBIN, is expected to benefit significantly from lower interest rates and economic recovery, improving NIMs and asset quality. Telecom (HFCL) and IT sectors are also favored, indicating potential for strong earnings growth. Hindustan Copper's inclusion suggests a positive outlook for select midcap and smallcap plays, possibly driven by infrastructure or industrial demand.

Traders should monitor upcoming quarterly earnings reports for signs of earnings recovery and capex growth. Keep an eye on RBI's monetary policy decisions for interest rate trends. Also, track FII/DII flows and broader market sentiment for confirmation of the bullish trajectory, especially in the recommended sectors.

• •Monarch Networth Capital expects Nifty to reach 27,000-28,000 in 2026.
• •The Nifty target is driven by earnings recovery, capex growth, and lower interest rates.
• •The brokerage favors banking, telecom, and IT sectors.
• •Opportunities are seen in select midcap and smallcap stocks including SBI, HFCL, and Hindustan Copper.
• •Risk flag: Unexpected rise in interest rates