Nifty 50 forecasted to grow 10-12% by 2026

Manish Sonthalia from Emkay Investment Managers forecasts a 10-12% growth in the Nifty 50 index by March 2026. He cites positive earnings expectations and potential rate cuts in India as key factors for this growth. Sonthalia emphasizes the importance of consumption themes, suggesting that sectors like discretionary spending and FMCG will benefit from a recovering rural economy. He notes that mutual fund inflows remain strong, indicating investor confidence. He also discusses the potential for commodity and metal stocks to rise, driven by a predicted decline in the US dollar and stimulus measures in China. Overall, he believes the market is nearing a bottom, with double-digit gains possible in the near future.