New Delhi, Dec 19 (NationPress) It is projected that India's benchmark index Nifty could reach 29,094 within the next year, driven by long-term valuation assessments and the resilience of earnings, as stated in a recent report.

The wealth management firm PL Wealth highlighted that as India approaches the end of 2025, it does so from a vantage point of relative macroeconomic strength, characterized by record-low inflation, a dovish monetary policy, robust domestic demand, and an enhanced outlook for corporate earnings.

In the short term, large-cap stocks are seen as preferable due to their earnings stability and solid balance sheets, while the firm is also increasing its exposure to select high-quality mid-cap stocks as their visibility improves.

Over the next 6 to 24 months, the earnings cycle is anticipated to expand across various sectors including consumption, financials, capex-linked industries, and specific industrials. This growth is supported by favorable inflation rates, reduced interest rates, and maintained domestic liquidity.

“India’s current macroeconomic setup is among the most favorable we have encountered in over a decade,” remarked Inderbir Singh Jolly, CEO of PL Wealth Management.

While global uncertainties may induce short-term fluctuations, India’s inherent strengths—such as policy reforms, financialization of savings, and strengthening corporate balance sheets—position the country for sustained long-term growth, Inderbir noted.

The RBI has reduced its policy repo rate by 25 basis points to 5.25%, which has led to a decrease in its CPI inflation forecasts and an upgrade of GDP growth predictions, reflecting confidence in the sustainability of domestic demand, the report indicated.

The firm also projected a FY26 GDP growth of 7.3%, supported by considerable infrastructure investments, resilient consumption patterns, and pivotal policy initiatives such as GST rationalization and income tax reductions.

The earnings season for the September quarter of FY26 showcased widespread strength, with multiple sectors—including hospitals, capital goods, cement, electronics manufacturing services, ports, NBFCs, and telecom—reporting double-digit growth in both EBITDA and profits.

Moreover, the firm observed that Nifty earnings per share estimates for FY26 to FY28 indicate an earnings CAGR of nearly 14%. Domestic institutional investors have significantly supported the markets with record net inflows exceeding Rs 6.8 trillion year-to-date.