New Delhi, June 12 -- The Indian stock market has been under pressure this year, with the benchmark Nifty 50 falling more than 10% in 2026 so far, weighed down by the prolonged Iran-US war, surging crude oil prices and weak earning growth. Amid this backdrop, PL Capital has cut Nifty 50 target to 26,449 from 27,080 earlier, but expects the markets not to correct further.

Nifty 50 is currently trading at 16.5x 1-year forward EPS, which is at 13.6% discount to 15-year average PE of 19.1x and is at a discount of 18.7% to 10-year average PE of 20.3x, PL Capital noted. It its base case, it values Nifty 50 at 10% discount to 15-year average PE of 17.2x with FY28 EPS of Rs.1,538 and arrives at 12-month target of 26,449 as compared to 27,080 ear...