Market Outlook 2026: Kotak Securities Sees Nifty 50 at 30,000; THESE 4 Sectors Lead Rally, Gold To Stay Strong

The Indian stock market, which recently hit fresh all-time highs, is expected to extend its bullish run into 2026, supported by strong earnings forecasts, policy tailwinds, moderate inflation, and a favourable macroeconomic backdrop, Kotak Securities said in its Market Outlook 2026 report released on Wednesday, December 10.

Nifty touched an all-time high of 26,310 and Sensex touched its record-high mark of 86,159 in the first week of December. Nifty 50 has gained over 8.49% year to date, whereas Sensex has gained around 7.49% in the duration. The growth in Nifty and Sensex during the year was led by large-cap stocks, whereas midcap and small cap stocks suffered losses.

Nifty Outlook For 2026

In the next year, Nifty 50 is likely to continue its growth supported by strong earnings and positive policies. However, geopolitical headwinds may continue to impact the market sentiment. "India remains a beacon of growth amid global turbulence. Our outlook for equities is upbeat, driven by robust earnings projections and policy support while gold is expected to retain its shine as a safe-haven asset in 2026. With rising participation from young investors, the market is set for deeper engagement and wealth creation," stated Shripal Shah, MD & CEO, Kotak Securities on Wednesday.

As per Kotak Securities, Nifty is projected to reach 29,120 by December 2026, assuming a PE of 20.0x on FY28E EPS of Rs 1,456. In a bull case the benchmark could attain the target of 32,032, or may remain lose to 26,208 in bear case, as per the brokerage.

Market Outlook 2026: Four Sectors To See Robust Growth In 2026

The banking, financial services and insurance (BFSI), healthcare, technology and hospitality sectors are likely to see a strong growth in the calendar year 2026, Kotak Securities, while maintaining its bullish stance on the four sectors.

"We expect the growth in net profits in FY27E to be broad-based across sectors. Nifty-50 Index net profits grew by 6.6% in FY25, and the growth is expected to be at 8.2% in FY26E and accelerate to 17.6% in FY27E. Our preferred sectors include BFSI, Information Technology, Healthcare, Hospitality," stated Kotak Securities in its report.

Gold Glitter To Continue, Silver Set To Shine Brighter

The price of gold in India saw a robust growth in the year 2025. The prices of gold have surged nearly more than 50% since the beginning of the year 2025 due to its safe-haven rally driven by geopolitical uncertainty and macroeconomic conditions. Meanwhile, silver outshone the yellow metal because of its strong appeal as a safe-haven asset and strong industrial demand.

"Goldʼs medium to long-term fundamentals remain positive as the U.S. fiscal position continues to deteriorate, with rising debt-service costs likely pushing policymakers toward forms of implicit financial repression that keep real rates structurally low, a historical tailwind for gold." Given the strong momentum in gold price rally, the precious metal is entering a "higher-for-longer" regime and may scale $5,000 mark over the next year, as per the report.