Expert view, Aug. 25 -- Karan Aggarwal, co-founder and CIO at Ametra PMS, believes the Nifty 50 can hit 27,000 by March 2027. He, however, added that the market may be overlooking the risks of elevated bond yields in the US and Japan, rich valuations of Asian and US markets, and commodity inflation.

In an interview with Mint, Aggarwal said there may be no EPS de-rating in India, but negative global cues could lead investors to give up on the next round of re-rating, triggering 10%-20% valuation compression for the Nifty 50.

At present, Nifty 50 valuations at 21 times on a consolidated basis can be justified with an EPS growth rate of 15% or above. However, given trends in Q1 and negative base effects in the auto, banking, and metals sec...