Japanese brokerage said on Monday that India’s actual GDP growth in FY 2026 will decrease from 6.5 percent in FY 2025 to 6.2 percent in FY 2026. Nomura said in a research report that GST collection has a difference between growth and auto sales and bank loan growth between other high frequency growth indicators. According to PTI news, according to official data released last week, the actual GDP growth declined to 6.5 percent in FY 2025, which was 9.2 percent in FY 2024.
What does Nomura’s approach say?
According to the news, according to official data, RBI is expected to remain stable at 6.5 percent. Nomura said in its report that our basic approach assumes that GDP growth will decrease from 6.5 percent in FY 2025 to 6.2 percent in FY 2026. Japanese brokerage revised the Nifty’s target for March 2026 to 26,140 points, which was above the previous level 24,970 points. Also, it also tried to reduce concerns over evaluation.
Indian equity markets are flexible
Nomura said the Indian equity markets have been flexible in recent times despite the cut in corporate income estimate and global uncertainties. The report stated that we feel that positive domestic macros, as a significant decline in the yield and consistently supported by the consistent domestic flow, are reflected in the relatively low beta of Indian equity, supporting market evaluation. However, American brokerage colleague Bofa Securities made cautious comments about the evaluation of the equity market and said they seem to be complete in the near period.
Pointed to structural subjects
However, Brokerage said it hopes that India will remain a high number of stock compounders and indicated rapid infrastructure construction, productivity gains, digitization and objects to nine structural topics. Nomura said that given global uncertainties, it prefer domestic-centered areas rather than exporters, and also expects a delay in the investment cycle due to global uncertainties.
The consumption stocks have performed less during the market improvement since reaching the peak in September 2024, saying that the current macro environment marked by low inflation, cuts cuts and income tax cuts offers favorable conditions for consumption.
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