PL Capital Predicts Bullish FY26: Nifty May Touch 27,590, Backs 22 Stock Picks

In the ever-shifting world of stock markets, PL Capital has brought forward a positive outlook for FY26, despite ongoing global uncertainties and market volatility. The firm sees potential for strong gains, especially for domestic investors keeping an eye on structural trends and sector-specific growth.

India’s Stock Market Outlook: Three Possible Paths

According to PL Capital, the Nifty 50 index could see a significant upward movement in the coming year. It has laid out three clear scenarios based on different valuation assumptions:

• In the bull case, Nifty could rise to 27,590, assuming a return to its long-term average valuation.

• The base case sees the Nifty settling at 25,521, factoring in a modest discount.

• Under the bear case, a further dip to 24,831 is projected.

Each scenario is built around expected earnings per share (EPS) and valuation multiples based on historical averages, reflecting how investor sentiment and global cues may influence performance.

Top Sectors and Stock Picks to Watch

PL Capital’s updated model portfolio shows a clear preference for domestic-facing sectors. These include Banking, Healthcare, Consumer Goods, Telecom, and Capital Goods—all considered strong pillars of India’s economic engine.

Among the top large-cap picks are:

• ICICI Bank

• Kotak Mahindra Bank

• ITC

• Bharti Airtel

• Bharat Electronics (BEL)

Other prominent names, like Apollo Hospitals, Pidilite Industries, and Eicher Motors, have also been highlighted for their robust fundamentals and consistent performance.

Mid and Small Cap Stars in the Spotlight

In addition to large caps, 11 promising mid and small-cap stocks have caught PL Capital’s attention. These include:

• Aster DM Healthcare

• Chalet Hotels

• KEI Industries

• IRCTC

• Triveni Turbine

• And more…

Each of these has been selected for strong fundamentals, sectoral growth potential, and the ability to outperform in uncertain markets.

What This Means for Investors

While short-term risks like global trade tensions and FII outflows remain, the long-term structural strength of the Indian economy provides solid ground for optimism. With a well-diversified portfolio across sectors and market caps, PL Capital believes FY26 could be a pivotal year for investors looking to ride the next wave of growth.