Elara Capital Targets Nifty at 30,000 by March 2027, Sees 17% Upside Potential
Elara Capital projects Nifty to reach 30,000 by March 2027, representing 17% upside from current 25,666 levels, driven by anticipated earnings rebound. The brokerage favours consumption sector premiumization themes including discretionary plays, auto, jewellery, beauty care, and hotels. Additionally, it maintains overweight positions on NBFCs, private banks, and oil marketing companies amid soft crude prices and expanding refining margins.
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Elara Capital has projected the Nifty index to reach 30,000 levels by March 2027, indicating a potential 17% upside from Wednesday's closing level of 25,666. The brokerage firm attributes this optimistic outlook to an expected earnings rebound that could drive the benchmark index higher over the next few years.
Market Outlook and Target Analysis
The brokerage's target represents significant growth potential for the NSE benchmark index. Based on the current market positioning, Elara Capital anticipates that improving corporate earnings will serve as the primary catalyst for this projected surge.
| Parameter: | Details |
|---|---|
| Current Nifty Level: | 25,666 |
| Target Level: | 30,000 |
| Timeline: | March 2027 |
| Projected Upside: | 17% |
| Key Driver: | Earnings rebound |
Sector Preferences and Investment Strategy
Elara Capital has outlined specific sector preferences in line with their bullish market outlook. The brokerage maintains an overweight position on the consumption sector, particularly focusing on premiumization themes across various segments.
Preferred Consumption Themes
The firm's investment strategy emphasizes sectors benefiting from premiumization trends:
- Discretionary plays - Consumer spending on non-essential goods
- Automobile sector - Benefiting from upgraded consumer preferences
- Jewellery segment - Premium and luxury jewellery demand
- Beauty and personal care - Growing premium beauty market
- Hotels and hospitality - Premium travel and accommodation trends
Financial Services and Energy Sector Outlook
Beyond consumption themes, Elara Capital has identified additional sectors with strong growth potential. The brokerage maintains overweight positions in NBFCs and private banks, indicating confidence in the financial services sector's performance trajectory.
Energy Sector Opportunities
The firm also favours oil marketing companies, citing two key supportive factors:
| Factor: | Impact |
|---|---|
| Soft crude oil prices: | Improved input cost dynamics |
| Refining margin expansion: | Enhanced profitability prospects |
These conditions create a favourable operating environment for oil marketing companies, supporting Elara Capital's positive stance on the sector. The combination of lower input costs and expanding margins could translate into improved financial performance for companies in this space.
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