BofA Sees Nifty at 26,500 in 2025; Expects Broader Market to Underperform

In a recent report, Bank of America (BofA) has set its target for India’s benchmark Nifty index at 26,500 by 2025, signaling a cautious outlook for the broader Indian stock market. BofA analysts suggest that while the Nifty may see limited upside, the broader market is likely to underperform in the coming years.




The forecast is based on expectations of lower earnings growth and higher market volatility, with the global economic slowdown and potential domestic challenges playing a pivotal role in dampening investor sentiment. BofA's report indicates that market conditions may favor large-cap stocks within the Nifty, while smaller stocks and broader indices are likely to face tougher times.

The Nifty, which has been a key performance gauge for Indian equities, has seen robust growth in recent years. However, with global uncertainties and a shifting economic landscape, BofA's target of 26,500 reflects a more conservative view for the future, marking slower growth compared to previous projections.

Investors may need to adjust their strategies, focusing on selective, high-quality stocks within the Nifty 50, while being wary of the underperformance potential in mid and small-cap segments.

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