Why Has Nomura Raised Its Nifty Target and Shifted Sector Preferences?
Nomura on Indian Markets:
Nomura has set a Nifty target of 26,140 by March 2026, implying an upside potential of nearly 4% from current levels. The brokerage’s outlook reflects optimism on earnings momentum, domestic demand stability, and valuation resilience despite global uncertainties.
The foreign brokerage remains positive on India’s medium-term equity outlook, citing broad-based growth in consumption, infrastructure, and financial sectors. Nomura’s updated model portfolio indicates incremental preference for high-quality, value-compounding businesses.
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Nomura’s constructive stance aligns with strong corporate earnings momentum seen in Q2FY26. It expects rotation from mid-caps to large-caps as valuations in smaller companies normalize post strong outperformance in recent quarters.
📊 Key Portfolio and Sectoral Changes
- New Additions: PEPL IN, SWIGGY IN, and TTAN IN — all recently initiated and added to Nomura’s preferred stock list.
- Sector View: In commodities, Nomura prefers Cement over Metals, particularly after the recent steel stock rally. It adds ACEM and removes JSP from its preferred coverage.
- Replacements: Based on relative valuations and growth potential, Nomura replaces ATHERENE with TVSL, BPCL with PLNG, and LODHA with ABREL.
- Pharma Upgrade: The brokerage has turned constructive on pharmaceuticals from a tactically cautious stance and added ALKEM to its preferred stock list.
This reshuffling reflects Nomura’s preference for sectors with stronger earnings visibility and balance sheet strength. The pivot toward pharmaceuticals and cement indicates confidence in domestic demand themes and reduced near-term risk from global commodity volatility.
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Nomura’s tactical adjustments in its preferred list suggest a balanced view — moderately bullish on overall markets, but with selective rotation into defensive and structurally strong sectors. The 4% upside target implies a measured approach ahead of FY26–27 earnings revisions.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that Nomura’s recalibrated stance highlights renewed faith in India’s earnings cycle. Preference for cement, pharmaceuticals, and quality consumer stocks reflects defensive repositioning while retaining upside potential. Investors may watch for rotation-led opportunities in large-cap outperformers as markets near the FY26 target band.
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Related Queries
- What does Nomura’s Nifty target of 26,140 imply for market sentiment?
- Why is Nomura favoring cement over metals at this stage?
- Which new stocks entered Nomura’s preferred list in October 2025?
- How does Nomura’s constructive view on pharma influence investor positioning?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
