Nifty could scale 28,615 by end-2026 on stronger FII inflows

India's Nifty 50 index could potentially reach 28,615 by December 2026 if foreign portfolio investors maintain robust inflows and global crude oil prices ease from current levels, according to market strategists.

Following the index's January peak of 26,373, valuations have recalibrated meaningfully relative to emerging market peers, creating a more balanced starting point for the second half of the calendar year, analysts noted. This reset in relative valuation metrics has removed some of the froth that had accumulated during the initial rally, providing a firmer foundation for sustained upside.

The outlook assumes two critical variables: continued foreign institutional buying into Indian equities and a cooling in international oil prices, which have implications for both corporate earnings and inflation dynamics in the economy. Stronger FII flows would signal sustained confidence in India's growth trajectory, while moderating energy costs could support margin expansion across sectors.

Market participants remain watchful of both macroeconomic indicators and global sentiment toward emerging markets. The trajectory outlined by analysts reflects a measured optimism about India's equity markets, contingent on the convergence of these external and internal factors over the coming months.