Bernstein cuts its base-case Nifty 50 target to 26,000, citing high crude prices, rising inflation, delayed rate cuts, and geopolitical tensions.
Bernstein cuts its base-case Nifty 50 target to 26,000, citing high crude prices, rising inflation, delayed rate cuts, and geopolitical tensions.
International brokerage Bernstein cuts its Nifty 50 target to 26,000 for the calendar year 2026, given elevated crude oil prices, rising inflation, and delayed rate cuts. The brokerage further noted that it sees realistic chances of inflation breaching 6% this summer, rate cuts to get pushed for two quarters at the least, and GDP growth to taper.
While the index has already fallen about 12% year-to-date, the brokerage said the path ahead will depend largely on how long the current geopolitical tensions and the resulting spike in crude oil prices last.
"We retain our neutral stance and believe the rupee will continue seeing pressure this year at different points. This means that the overall markets for 2026 could well be flat to slightly negative," the brokerage said.
As of now, the risk reward still yields us in the neutral zone. "The market fall and the potential for a rebound on the end of a war will likely be a key area of investor scrutiny - but what no one knows is when the war ends. It is a binary call - and given the macro, earnings impact the market fall should not be characterized as just due to sentiment."
Other Information (Not the part of Bernstein)
IT stocks - most bearish as of now
Banking stocks - Most bullish
Stock on radar -