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In an exclusive conversation with Zee Business Managing Editor Anil Singhvi on ‘Market Masters’, Deven Choksey, MD of DR Choksey FinServ, said the Indian market is poised for a sustained uptrend driven by robust consumption, low inflation, and strong earnings growth. He believes Nifty 30,000 is an achievable target in 2026.

According to Choksey, 2025 is shaping up as a highly promising year for the Indian economy. A combination of tax relief, lower GST, and government-led infrastructure spending has left more disposable income in the hands of consumers, boosting demand.

“Post the recent direct tax changes and GST rate cuts, around Rs 3 lakh crore of additional purchasing power has entered the economy. Interest rates and inflation are low, while both industrial and personal consumption are rising. I have rarely seen such a positive macro setup,” Choksey said.

He added that corporate earnings, which remained subdued in the past few quarters, are likely to accelerate from the second half of FY27.

Responding to a question on Nifty’s potential to hit 30,000 levels, Choksey said the target looks realistic if corporate earnings continue to grow at the projected pace.

“To take Nifty to 30,000, we need around 15 per cent earnings growth — and we are seeing clear visibility for the next two years,” he explained.

He highlighted the declining cost of power as a key structural driver for margins. “The cost of power for enterprises has already come down from Rs 9-10 to Rs 7-8 per unit, and by 2027-30, it could fall to Rs 5.5-6.5 due to renewable energy. This will be a game-changer for heavy power consumers.”

Choksey expects market leadership to come from large-cap and industrial companies. “The big are getting bigger,” he said, adding that companies such as Reliance Industries, Hindalco, Tata Steel, Vedanta, and Larsen & Toubro could drive the next leg of the rally.

He also expects strong order inflows for engineering and power infrastructure companies, especially from the Middle East and reconstruction projects in regions like Ukraine and Israel.

While defence and railway stocks remain strong, Choksey warned that valuations are stretched, suggesting limited upside in the near term.

On the financial sector, Choksey said, “Banks and NBFCs are well-positioned with strong corporate and retail lending opportunities. Some large banks still offer good value.”

He also remains optimistic on consumer technology companies but cautioned about their rich valuations. “Many of these firms are already discounting earnings up to FY28, which could lead to a temporary slowdown. Post the second-quarter earnings season, we may see portfolio churn as investors shift toward large-cap companies trading at attractive valuations", he said.

Summing up, Choksey said India’s market is entering a phase of sustainable growth supported by improving profitability, robust domestic demand, and structural cost advantages.

“If earnings visibility continues to improve, Nifty 30,000 is certainly achievable,” he concluded.

Abhay Shukla is a Senior Sub-Editor at Zee Business, where he covers the stock markets, corporate news, personal finance, technology, and auto sectors.

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