Now Reading: Nifty 50 can hit 27,000 by March 2027, says Ametra PMS CIO
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Nifty 50 can hit 27,000 by March 2027, says Ametra PMS CIO
Karan Aggarwal, co-founder and CIO at Ametra PMS, has said the Nifty 50 could reach 27,000 by March 2027 under a best-case scenario, assuming no global shocks and EPS growth of 10-11%.…
Karan Aggarwal, co-founder and CIO at Ametra PMS, has said the Nifty 50 could reach 27,000 by March 2027 under a best-case scenario, assuming no global shocks and EPS growth of 10-11%. He cautioned that markets are overlooking risks from rising bond yields in the US and Japan, rich valuations in Asian and US markets, and commodity inflation.
Aggarwal said that if negative global cues lead investors to give up on the next round of re-rating, the Nifty 50 could see a 10-20% valuation compression. He also flagged that crude oil prices are rising towards $90-95 per barrel while markets are pricing in $70, and that bond yields above 5% in 2022 triggered a 30% drop in global equities.
On midcaps and smallcaps, Aggarwal said they are trading at abnormally high multiples of 30 with low double-digit growth, and a reversal is overdue. He added that FPIs are withdrawing money, disproportionately impacting large caps.
Indian Opinion Analysis
Aggarwal's 27,000 target is roughly 15% above current Nifty levels, implying an annual return of about 5% over two years, modest by historical standards. His warning on commodity inflation squeezing margins comes as India's CPI-based inflation has stayed within the RBI's 2-6% band, but input costs for auto, metals and banking sectors remain elevated. The next trigger to watch is the RBI's monetary policy decision in October, which will signal if rate cuts are on the horizon to support growth.
Source: livemint.com
This story was synthesised by AI from the source linked above.
