New Delhi, Feb 25 (NationPress) Initial indicators of a market revival are surfacing in India, with projections suggesting that the Nifty index could reach 27,958 over the next 12 months based on a base case scenario, according to a report released on Wednesday.

The analysis from PL Capital indicates that in a bullish scenario, applying a 20x forward earnings multiple could push the index up to 30,497, whereas a more conservative bear case suggests a target of 26,486.

The forecast anticipates an EPS growth rate of 3.8 percent, with a robust medium‑term earnings trajectory projecting a 16.3 percent CAGR from FY26 to FY28. Corporate performances have shown resilience, with year‑on‑year growth in sales, EBITDA, and profit after tax recorded at 9.9 percent, 16.4 percent, and 16.7 percent, respectively, as stated in the report.

“India’s growth narrative is entering a crucial phase as policy clarity, landmark trade agreements, and a sustained push for infrastructure development converge to lay the groundwork for the next phase of expansion,” the report elaborated.

The extended period of market consolidation seems to be transitioning into a phase of renewed optimism, with structural drivers firmly established despite recent earnings adjustments, it further added.

“India is shifting from a cyclical recovery phase to a more robust structural growth trajectory,” commented Amnish Aggarwal, Director of Research at Institutional Equities, PL Capital.

As capital formation accelerates and productivity enhancements unfold, PL Capital believes that Indian equities are entering the nascent stages of a multi-year compounding cycle, Aggarwal further remarked.

A significant catalyst for the forthcoming growth cycle has been India’s expedited advancements in trade diplomacy, particularly emphasizing the India–EU Free Trade Agreement.

Sectors that are labor-intensive, such as textiles and apparel, marine products, leather and footwear, gems and jewelry, chemicals, machinery, and electrical equipment, are expected to experience substantial benefits.

Marine exports, leather goods, and gems—key employment drivers—are projected to see a notable increase in demand, the firm forecasted.

In terms of sectoral performance, banks and diversified financial firms are poised to gain from a normalization in credit growth toward 13–14 percent and stable asset quality. Additionally, capital goods and engineering companies are likely to leverage the ongoing infrastructure and defense initiatives, as noted by the firm.

aar/pk