Nifty target, May 23 -- Despite the Nifty 50 declining more than 9% this year, smallcase managers remain optimistic about the outlook for FY27, expecting India's benchmark index to trade in the 28,000-30,000 range by the end of the financial year.

According to the managers, the next phase of the market rally is likely to be driven by earnings growth rather than valuation expansion, with investors expected to focus more on sustainable profitability, execution strength and balance sheet quality instead of aggressive re-rating.

Smallcase managers have projected earnings per share (EPS) estimates for the Nifty and Sensex in the range of Rs.1,280- Rs.1,320. Based on the expected earnings trajectory, they expect the benchmark index to trade w...