June 3, 2025 - The Indian stock market's Nifty 50 is currently in a consolidation phase. According to analysts, the price-to-earnings ratio (PER) suggests that the Nifty 50 is in a neutral valuation zone.
India Inc.'s Q4 FY25 earnings revealed an 8.7% year-on-year increase in net profit for BSE-500 companies, while Nifty 50 companies reported a smaller 3.7% net income growth, indicating moderate operating performance across most sectors during Q4.
Emkay Global has set a Nifty 50 target of 26,000 by March 31, 2026, based on a long-term average PER of 20x on FY27 estimated EPS of 1,304. Kotak Institutional Equities points out that most sectors and stocks, with the exception of BFSI, have stretched valuations and forecasts Nifty EPS growth of about 12-13% in FY26.