New Delhi, Dec. 8 -- The Nifty 50 could touch 29,500 by December 2026 in a 'Goldilocks scenario' of stable global growth, softer volatility, and policy continuity under the new U.S. administration. This is supported by robust macroeconomic trends, Axis Securities projects 13% CAGR Nifty earnings growth over FY23-28, led largely by financials.

In its base case, the brokerage revised its Nifty target to 28,100 for December 2026, valuing the index at 20x Dec'27 earnings. While the bear-case target of 24,000 assumes persistent inflation in the developed world, currency pressure, and slower earnings recovery due to global trade disruptions.

The brokerage credited multiple domestic triggers for restoring investor confidence heading into FY26....