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Nifty target held at 28,000 as oil prices and geopolitics weigh on rally
ICICI Securities expects Nifty earnings to grow at nearly a 16% CAGR over FY26 to FY28E, even as it flags potential near-term moderation in Q2FY27 from lagged commodity price effects.
LiveMint Markets reports that ICICI Securities research head Pankaj Pandey kept his 12-month rolling Nifty 50 target unchanged at 28,000 and raised no changes to his related Sensex target of 93,000.
Pandey said the domestic market remains in consolidation, with higher oil prices keeping investors wary of an inflation flare-up, tighter monetary policy, weak earnings, and slower economic growth. He added that, as long as the US-Iran conflict remains unresolved, a sustained rally is less likely.
On earnings, Pandey said Q1 results came in better than street expectations, pointing to resilience despite a volatile macro backdrop. He cited Nifty-level topline growth at 18% year on year and adjusted PAT growth of 15% year on year, with financials outperforming non-financials.
Looking ahead, Pandey said Q2FY27 earnings could moderate due to the lagged impact of elevated commodity prices, but he expects the full-year impact to be manageable. He also said Nifty 50 earnings are expected to rise nearly 16% CAGR over FY26 to FY28E, and he expects the double-digit earnings growth trajectory to remain intact.
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